Whoa, what a way to ride the market lower. On a day when bank stocks were sold off heavily, dragging the wider market lower, the Bank of Queensland (BOQ) chose to reveal that it would have to take a $15 million hit to cash earnings for the six months to March 31 as it scopes a series of job cuts to try and protect the profit line against a margin squeeze.Read More
FY15 results were ahead of UBS expectations. The broker is pleased the hard yards have delivered since the business was recapitalised three years ago.Read More
Bank of Queensland’s (BOQ) FY15 results were a further confirmation for brokers that the bank has made good on its turnaround commitments, demonstrating several positive trends. Opinions on the bank have improved over the last year or so, with Buy ratings appearing on the FNArena database where previously there were none.Read More
Ahead of Bank of Qld’s result on Friday, the broker suggests the market is pricing in system growth ahead that isn’t coming, impairment reductions that are unlikely and margin improvement that is far from certain. There will be improvement in these areas but not significantly, and the broker has trimmed forecast earnings to reflect lower revenue expectations.Read More
Citi has lifted FY14 and FY15 earnings estimates by 1% and 3% after the FY13 results. The rally in the share price after the dividend increase further reduces the capacity for the bank to grow without capital raising, although it does minimise a build up in franking credits.Read More
The Bank of Queensland (BOQ) has returned to profits for the 2012-13 year, putting behind it the tough 2011-12 when it became the first Australian bank in 20 years to record a loss.Read More
It was, on first view, underwhelming. Bank of Queensland ((BOQ)) announced the acquisition of Virgin Money Australia and received a cool reception from brokers. The underlying problem is that Virgin Money is loss-making at present and comes via previous ventures with Westpac (WBC) and Macquarie ((MQG)). Venturing deeper into the benefits of the acquisition provides a better view of how the bank can leverage the business.Read More
If the protagonists in the US Cliff discussions have no other incentive to reach a resolution, it is to be able to enjoy a Christmas break. Hence while many in the market are confident an agreement could be reached before year-end, others suggest the incentive to not be stuck in Washington from Christmas to New Year is enough to encourage pre-Christmas success.Read More
Citi rates the stock as Upgrade to Neutral from Sell –Read More
Shares in the Bank of Queensland relisted yesterday after the first stage of a $450 million capital raising, and contrary to previous belief, the damage to the share prices wasn’t too heavy.Read More
It’s not the start of a trend, but the loss from the Bank of Queensland should worry investors.Read More
RBS expects full year earnings for BOQ of $184.9m, which is in the middle of the guidance range. The major risk to the result is potential for an increase in bad debts in 2H11.Read More
The heavens began opening over the Sunshine State in late 2010 and by early 2011 the state was awash. Cyclone Yasi was the icing on an tragic cake. The reality is Queensland’s economy began to slump in 2008.Read More
Bank of Queensland issued a profit warning and Citi analysts were already prepared. After all, the floods in Queensland have been difficult to miss even if one tried. Having said so, the analysts seem to disagree with management that it was all related to the floods. They suspect that’s merely a convenient excuse, there’s weakness and vulnerability in BOQ’s SME/Commercial book, they point out instead.Read More
Earnings forecasts have been lowered by some 10% as Citi analysts doubt whether management will be able to meet its own profit guidance for this year, this due to the disaster in Queensland. Having said so, the share price has responded accordingly and Citi now believes a Sell rating is no longer warranted. This explains the upgrade to Hold.Read More
Those looking in from the outside have always found Queensland a slightly strange place. Maybe it’s because the state symbol is Bob Katter’s hat. But realistically Queensland is presently caught a bit betwixt and between. The problem is it’s Western Australia on the east coast.Read More
On the eve of this week’s AGM, Bank of Queensland has effectively issued a profit warning for the year and given recent share price appreciation, Citi is of the view that both combined now warrant a Sell rating. Hence why the decision was made to downgrade the rating from Hold.Read More
It’s tough being a small fish in a big pond, even if the states of Queensland and Western Australia to which you are most exposed boast all the underground goodies. And those states aren’t without their debt problems.Read More
How times have changed in banking, or rather, in the way banks are now valued by investors.Read More
With the full year result due on Oct 14, Citi is of the view that Bank of Queensland may disappoint the market.Read More
The result was in line with UBS expectations with a flat dividend.Read More
Bank of Queensland (BOQ) yesterday led off a bank result mini-season which sees three of the Big Four (ex-CBA) as well as Macquarie Group reporting in the next couple of weeks.Read More
Citi analysts argue the overall environment for regional banks in Australia has improved, and continues to improve. Among factors cited to back up this claim is the fact that the market for Residential Mortgage Backed Securities -shortcut: RMBS- essential instruments in the financing models of the banks has sprung to life again.Read More
‘Crisis what crisis’ might be the comment about the 2009 annual profit result from the Brisbane-based regional lender, Bank of Queensland.Read More
Full year earnings of $187.4m were 1% above guidance and result in the broker making minor increases to its numbers in coming years, which supports the increase in price target.Read More
No matter how hard management is trying to convince the market there’s good news to be found inside the organisation, RBS analysts believe questions surrounding the bank’s model remain and this will keep a lid on the share price. Until the key question -how is this model going to perform during an economic downturn- is being answered, negative sentiment is going to prevail, predicts RBS. Target lowered to $7.85 from $8.69 previously. On current RBS estimates dividend payouts will dive in each of the next two financial years. Sector: Banks.Read More
Management’s market update surprised the market, and it certainly did surprise analysts at Citi. As a result, the analysts have raised their cash EPS forecasts by 11% in FY09, by 8% in FY10 and by 5% in FY11. Key driver of the lift in FY10 and FY11 estimates, the analysts explain, is higher interest margins due to stronger deposit inflows in 1H09. Sector: Banks.Read More
Bank of Queensland today posted record growth in its interim results despite a difficult environment.Read More
Given the stock has fallen 6% in the past 8 trading days against a 0.7% fall in the broader market the broker has upgraded its rating.Read More
The broker downgraded BOQ when Bendigo was still in the offing and the share price looked full. Returning now to review, the broker has decided there is upside risk to earnings and the stock has fallen a long way on the Bendigo failure. Upgrade.Read More
Well he would say that but if that’s the main rationale for bidding for Bendigo Bank then Bank of Queensland CEO David Liddy, had better go back to the drawing board.
Mr Liddy said at theBoQ interim profit announcement that the proposed merger with Bendigo Bank Ltd is important for regional banking in Australia.
He said at the results presentation that the merger would create a new force and an alternative in the financial services banking landscape.
“A merged entity would be a strong force and we’re natural allies against the big banks. We are working to be a real force and an alternative to the big banks.”
He said the proposed merger of the two regional banks was recognition of the changing landscape of the financial services sector and he hoped due diligence could start with Bendigo Bank soon.
Surely the point of any merger is to improve returns for shareholders in both companies, not to build ‘new forces’.
For its part Bendigo Bank is busily consulting with its shareholders, many of whom live in and around the central Victoria city.
BEN doesn’t have any significantly large institutional shareholdings so it will be decided by the attitude of thousands of small customers and shareholders, most of who will look to the bank’s board for guidance. (A bit like Coles at the moment)
That’s why BEN has cleverly established a hotline to encourage letter writing and email comments from shareholders and others in the community around Bendigo about the bid from Bank of Qld and what BEN and its board should do.
“There have been some concerns raised in the past fortnight by some members of the Bendigo community, however as the merger discussions progress we believe these concerns will be allayed,” Mr Liddy said in a statement with the profit yesterday.
“We have committed to preserving Bendigo Community Bank branches. We have committed to preserving the Bendigo headquarters. We have committed to preserving the Bendigo brands. We have committed to retaining key executives and giving significant Board representation.
“If we work on the premise, and I believe most in the finance sector do, that mergers are going to occur involving the regional banks, then there is no better fit for Bendigo Bank than Bank of Queensland,” Mr Liddy said.
“For Bendigo shareholders we believe the price is extremely attractive and we believe a merged team is best-suited to understanding their culture, growing the business and has the operational and integration experience to make it work,” Mr Liddy said.
“We both understand how to run growing branch networks involving third parties, whether they are franchisees or community boards.
“I believe we have shown our skills and experience in execution and that together a combined BOQ and Bendigo Bank will be a powerhouse in the Australian retail banking market and provide greater returns to the shareholders of both companies,” he said.
Promoting the merger as the putting together of a regional player and an alternative to the big bank sounds good, but Mr Liddy and his team would be better off talking to as many smaller BEN shareholders as possible.
Yesterday’s solid interim result might be a good starting point.
BoQ reported a 21 per cent lift in first half net profit to a record $48.4 million, from $40 million in the first half of 2006. It was struck on a 24 per cent rise in revenue to $219 million thanks to a 21 per cent rise in net interest income to $154 million.
Mr Liddy said the bank was exceeding targets in its lending and deposit growth and continued to be well ahead of the banking system.
BoQ shares were 29 cents stronger at $17.59 while Bendigo Bank shares eased 16c cent to $16.90.
Interim dividend is 32c from 30c.
Accounts released with the profit show a small but worrying increase in loans in arrears past 90 days from $60.3 million in the first half of 2006 to $94.6 million in the first half of 2007.
This stock is not as expensive as it seems, Citigroup analysts argue. Improved benefits and lower cost estimates have led the analysts to raise forecasts.Read More