Bank of Queensland (BOQ) result impresses
Stock
Bank of Queensland (BOQ) $11.17 as at 4/10/2018
Event
Bank of Queensland is having a pretty strong session trading up ~3.5% after reporting their full year numbers with an August 31st year end. Numbers were reasonable with a small beat at the profit line. Key to the result was a small increase in the Net Interest Margin (NIM) which expanded 1bp to 199bp in the second half, at a time where most other bank margins are falling + analysts has a slight decline penciled in for BOQ. The CEO Jon Sutton also spoke to this point, looking for “margin over growth.”
Bank of Queensland (BOQ) Chart
Market Matters Take/Outlook
The move today shows how negatively the market is positioned towards the banks – i.e. slight beats lead to good pops in the SP. While we prefer the big banks over the regionals, the move by BOQ to improve margins should be applauded.
