Shares in Value Logo
Product Review Img Vertical

Date : 14/10/2022

Bank of Queensland (ASX: BOQ) Surges after Announcing FY22 Results

Bank of Queensland (ASX: BOQ) is an Australian bank that offers different financial services to its consumers. The bank has been operating since 1874 and is based out of Brisbane.

Bank of Queensland is the parent company of both Virgin Money Australia and Me Bank, as well as the operator of both owner-managed and corporate branches. The BOQ brand is used for commercial loans, insurance, and other services, all of which fall under BOQ Finance and BOQ Specialist. Commercial clients may use the division’s individualised banking services, such as commercial loans, equipment financing and leasing, cash flow financing, foreign currency, interest rate hedging, transaction banking, and deposit solutions.

BOQ stock surges after Announcing FY22 Results in the market after the company announced FY22 results and outlook for FY23.

BOQ: FY22 Results Highlights

BOQ stock is trading at $7.61 and surged almost 11% after the company released its FY22 results. The current market cap of the company is AUD 4.9 Billion.

Bank of Queensland shares news

  1. BOQ announced revenue of $1.7bn in FY22, which increased by 1% compared to FY21.
  2. The company’s Statutory NPAT for FY22 was $426m, a 15% increase in FY21.
  3. Its net interest margin declined 12 basis points to 1.74% in FY22.
  4. BOQ announced the CET1 ratio was down 11 basis points to 9.57% in FY22.
  5. Its EPS increased 5% to $0.784 for FY22.
  6. The company’s final dividend surged by 9% to 24 cents per share and was announced to be fully franked.

BOQ stock fell due to concerns that Real Estate Prices might fall.

The market’s adverse view on the company brought the share price down from a peak of over $10 in October 2021 to a low of $6.50 in October 2022; thus, Bank of Queensland (ASX: BOQ)’s performance was pleasantly positive.

Fears of falling real estate prices and consumers’ worsening credit scores owing to rising interest rates and an impending recession were the main reasons the market showed little interest in the company during the last year.

BOQ: Australia’s economic recession worries may be exaggerated.

The RBA predicts rapid expansion of the Australian economy in 2022, followed by a slowdown in 2023. Strong demand for workers is keeping wages high and supporting family budgets. The high personal savings rate is a significant factor in the typically sound condition of household budgets.

The RBA contrasts these positive drivers of consumption with high inflation and rising interest rates, which are increasing the cost of living and will impact families’ expenditures.

The RBA acknowledges that it is unclear how all these conflicting factors will ultimately balance out and that this dynamic may change significantly over time. As supply chain challenges in China become less severe due to the country’s relaxing of its rigorous COVID-zero policy, researchers believe that the economy’s long-term outlook is optimistic.

BOQ: CEO’s Remarks

The CEO of BOQ said that the strong emphasis on implementing BOQ’s strategic strategy is reflected in the FY22 financial results, demonstrating our success in providing quality, sustainable, profitable growth.

Building on our digital transformation and Middle East integration progress, we’ve refined our approach and laid out a detailed plan until 2025. With myBOQ now joining VMA on the new shared core digital banking platform, we are one step closer to creating a genuinely multi-brand, cloud-based digital retail bank. Synergies have been realised earlier than expected, and the integration effort has reached many significant milestones this year.

BOQ: Bank of Queensland’s optimistic FY23 business forecast.

The bank’s optimism about the Australian economy is based on the same factors—low unemployment rates and healthy household savings—cited in the RBA economic outlook report that we referenced at the outset of this piece. However, the bank recognises risks owing to increased inflation, increasing interest rates, and a deteriorating global economy.

Conclusion

As a consequence of FY22 shares news & Analysis results, BOQ stock price reversed its downward trend. This means that the recent low of $6.50 is likely the bottom of the share price, according to technical analysis. The $6.50 price level has shown stable support for the BOQ stock. So, if the stock price were to break down below this level, it would be a negative indicator.

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.