Bank of Queensland Limited (ASX: BOQ) is a full-service financial institution. The Bank operates retail branches, business banking centers, and equipment finance centers throughout Australia and New Zealand. Bank of Queensland also operates an automated teller machine (ATM) network throughout Australia.
The company has through a release said that the long-proposed pact to sell the St. Andrews Insurance to the Freedom Insurance Group (Freedom) has been put to an end. The decision reached to a conclusion as both the parties mutually agreed, and it became very evident that the conditions precedent to the transaction won’t be satisfied within the predefined period as was mentioned into the sale agreement. Following this announcement, the share price of the company tumbled 3.439 on December 10, 2018.
However, even after this sale not materializing the company will keep on exploring the various strategic options that are necessary for relation to the St Andrews Insurance. Even though the transaction couldn’t materialize, the Insurance vertical continues to remain a strong and well-capitalized business. Meanwhile, the company will keep on delivering the various services to its customer and the corporate partners.
Also, as on 5th December 2018, the company’s MD and CEO Mr. Jon Sutton had resigned after serving the company for six long years due to the major health issues he faced, on account of which he had to undergo a major heart surgery earlier this year. This position will be meanwhile filled by the current Chief Operating Officer (COO) of the company Mr. Anthony Rose, who will be the Interim CEO. In the meanwhile, the company will carry on its search for the position a new CEO so that the smooth transition can take place at the company.
For the FY 2018, the company has resulted in good results in spite of a challenging and tough environment. The company’s asset base has increased on the back of robust growth in their lending profile. It saw a lending growth of $1.50 Bn on a YoY basis. The company is adequately capitalized which provides it the opportunity to invest in profitable businesses and thus enhance the shareholder's wealth. The company’s NIM increased to 1.98 percent. Also, the cost to income ratio came in at 47.50 percent. The bank’s asset quality has improved over the year, and the loan impairment expenses have reduced by $7 million to reach at the comfortable levels of $41 Mn, which resulted into just nine basis points of the total loan book.
There has been a strategy shift in the business of the bank with a better product mix and better-diversified business channels. This improved strategy has delivered substantial benefits for the company. This diversification has made it resilient enough to face the increasingly challenging business environment & strongly position itself in the market.
Meanwhile, the share price of the company has fallen by 3.37 percent in the past six months as on 7 December 2018. BOQ’s shares traded at $9.405 with a market capitalization of circa $3.91 billion as on 10 December 2018 (AEST 01:38 PM).
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