BOQ +6.54%: best day in a few years for BOQ producing a 6.5% beat to consensus for underlying cash profit largely due to stabilized net interest margins as well as an improvement in the business banking division.
FY24 result highlights:
- Cash profit $343 million, -24% y/y, estimate $322.5 million
- Final dividend per share $0.17 vs. $0.21 y/y
- Net interest margin on cash basis 1.56% vs. 1.69% y/y
A big turnaround under way for BOQ, and there is still plenty of work left to do as the above numbers highlight. They’ve rightly lagged their sector peers this year by a significant margin, however the move to buy-back all franchised branches is an interesting one. We hear the price being paid is on the low side, and there could be some push back, however, ultimately, when this completes it will give more optionality from a corporate perspective i.e. they could merge with BEN or be acquired by one of the majors.
MM remains neutral on BOQ
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