AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Bank of Queensland Limited (ASX:BOQ) released its 1HFY23 results wherein it clocked revenue (from ordinary activities) at AU$909 million, up by 9% on pcp.
- BOQ’s board has declared 1HFY23 100% franked distribution of 20 cps to be paid on 1 June 2023.
- In FY23, the bank anticipates the common equity tier 1 ratio to fall between the range of 10.25-10.75%.
On 20 April 2023, Thursday, at around 11:28 am AEST, the banking and financial services company Bank of Queensland Limited (ASX: BOQ), was up 2.305% and was trading at AU$6.435 after it declared its 1HFY23 results ended 28 February.
Let’s dig in further and look at the key highlights of BOQ’s interim results.
On Thursday, the ASX banking stock released its 1HFY23 results wherein it clocked revenue (from ordinary activities) at AU$909 million, up by 9% on pcp. Total income rose 9% over pcp to AU$902 million. It was propelled by greater net interest income and higher asset balances.
The statutory NPAT for the period declined by 98% from pcp to AU$4 million. It was impacted by two big one-off non-cash items- AU$60 million provision for the integrated risk program provision and AU$200 million impairment of goodwill. Though, net interest income got a boost of 12% on pcp to AU$832 million, driven by 5 basis points rise in NIM, along with a 9% increase in AIEA.
Cash earnings after tax stood at AU$256 million, decreasing 4% on pcp backed by a margin tailwind, which materially lessened across the previous two months of the first half period, with increased mortgage and deposit competition. The common equity tier 1 ratio was 10.71% in the first half period, rising by 114 basis points on 2HFY22.
BOQ’s board has declared 1HFY23 100% franked distribution of 20 cps to be paid on 1 June 2023. It has an ex-dividend date of 10 May and a record date of 11 May this year.
During the reported period, the bank advanced its digitisation with AU$3.8 billion of customer deposits presently on the new digital banking platform. It will soon launch the maiden phase of ME digital deposits on the same platform as the myBOQ and VMA brands, which is an important milestone in digitising the bank.
BOQ’s FY23 outlook
The bank anticipates seeing greater mortgage competition ongoing and accelerated deposit competition because of term funding facility refinancing, with interim margin compression expected. BOQ is focused on its multi-branch approach, with diversification through the retail and business banking portfolios giving the opportunity for prudent capital allocation.
The bank has a robust capital position. It anticipates the common equity tier 1 ratio to fall between the range of 10.25-10.75%. At the same time, the dividend payout target range is between 60-75% of cash earnings.
