Bank of Queensland Limited

Section 1: Company Overview and Fundamental Insights

1.1 Company Overview: Bank of Queensland Limited (ASX: BOQ) is a provider of a diverse range of retail banking, commercial banking, insurance, and wealth management services to individual and commercial clients. The Australian regional bank has more than 160 branches across the country. The bank operates through a number of brands -- Virgin Money Australia operates as a retail financial services company, ME Bank is a retail bank, BOQ Finance specialises in asset, cash flow and structured finance solutions, and BOQ Specialist caters to medical, dental, veterinary, accounting professionals, and other niche market segments. Kalkine’s Dividend Income Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~16.46% of the total shareholding. The Vanguard Group, Inc. and State Street Global Advisors Australia Ltd. are holding a maximum stake in the company at ~4.97% and ~3.53%, respectively.

1.4 Key Metrics: The company reported deposit growth of 7.1% in 1HFY23 as compared to 0.8% of the industry median. Below is captured the trend of net interest income and efficiency ratio:

Section 2: Business Updates, Financial, and Liquidity Highlights

2.1 Business Updates

2.2 Results Highlights of 1HFY23 (For the Period Ended 28 February 2023)  

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has witnessed a decline of ~13.77% in a month, and over the last 6 months, it has gone down by ~23.01%. The stock has a 52-week low and 52-week high of AUD 5.600 and AUD 7.790, respectively and is currently trading below the average of a 52-week high-low average. BOQ was last covered in a report dated ’19 April 2023’.

4.2 Fundamental Valuation

Valuation Methodology: Price/Book Value Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 11, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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