Bulletin: BoQ Set To Improve Margins And Grow Above System

MELBOURNE (S&P Global Ratings) Oct. 12, 2022--We forecast Bank of Queensland Ltd.'s (BoQ) interest margin to improve on the back of rising interest rates. This follows today's announcement of a 12-basis point decline for the full-year fiscal 2022 (year ended Aug. 31, 2022). While margins are likely to increase, we believe competition will limit the extent of the improvement. We expect BoQ (BBB+/Positive/A-2) will continue to target above-system lending growth. A softening of the housing market will likely reduce borrower demand, resulting in lower credit growth over the next 12 months. We forecast BoQ's loan growth to remain at or above system at about 5%. In our view, BoQ will continue to invest in cloud-based technologies while completing the integration

...October 11, 2022 MELBOURNE (S&P Global Ratings) Oct. 12, 2022--We forecast Bank of Queensland Ltd.'s (BoQ) interest margin to improve on the back of rising interest rates. This follows today's announcement of a 12-basis point decline for the full-year fiscal 2022 (year ended Aug. 31, 2022). While margins are likely to increase, we believe competition will limit the extent of the improvement. We expect BoQ (###+/Positive/A-2) will continue to target above-system lending growth. A softening of the housing market will likely reduce borrower demand, resulting in lower credit growth over the next 12 months. We forecast BoQ's loan growth to remain at or above system at about 5%. In our view, BoQ will continue to invest in cloud-based technologies while completing the integration of Members Equity Bank Ltd. The investments should help BoQ reduce its cost-to-income ratio from about 55% closer to 50% in the next three years. Capital should remain a strength for BoQ. We expect the bank will undertake...

Bulletin