Bank of Queensland shines
19/01/16 closing share price: $12.710
52 week high: $14.730
Most recent dividend: 38c Annual dividend yield: 5.73% Franking: 100%
Bank of Queensland is a 138-year old organisation with branches in every Australian state and territory. Listed on the ASX and comprising of three business lines of Banking, Finance and Insurance, the bank's goal is to be the real alternative in Australian financial services.
Bank of Queensland's recent strategic update provided a timely reminder of the progress it has made in the past several years. While there is further work to do, particularly in relation to productivity, the key drivers to date have been the expansion in its mortgage broker distribution network and the successful acquisition of BOQ Specialist.
Bank of Queensland has a strong balance sheet, with a large cash reserve and a robust funding mix. This, in combination with our expectation for further margin gains on the back of improvements in Queensland's tourism and property markets, puts Bank of Queensland in a good position to withstand pockets of pricing pressure and a higher regulatory impost.
James Lennon is a senior analyst at investment research and funds management house Fat Prophets.
Disclosure: Bank of Queensland is held in the Fat Prophets Concentrated Australian Share, Australian Share Income and small and mid-cap model portfolios.