Half Year 2022 Bank of Queensland Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joshua Freiman - Macquarie Research - Analyst : I'd just like to expand on Richard Wiles' question that he just asked earlier. I know historically, you've had a smaller relative replicating portfolio, just on a size basis, the key is given your deposit mix. But with the increase in restructure of that replicating portfolio, it kind of implies that you've seen an improvement in deposit franchise quality. And I know you've mentioned the R&D in that respect. But I mean lots of your peers have also had that same increase in low-cost deposits in this environment. What sort of color can you provide on why you expect that low-cost deposit change to be permanent?

Question: Joshua Freiman - Macquarie Research - Analyst : I guess, sorry, just quickly following up. Do you guys still then expect to see benefit from higher rates on that unhedged deposit because you would have lowered your sensitivity? Do you guys quantify that at all or can you?

Question: Joshua Freiman - Macquarie Research - Analyst : Yes, effectively unhedged...

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : Just kind of follow up from based on that question. And it comes down to that cost base which I think it really comes down to where the profitability can go. If you think about pro forma costs, you called out $933 million, and then you've increased synergies again, which is got to say the $95 million. So somewhere around that $835 million should be the starting cost base. But we know that there's a substantial digital investment coming to an amortization costs, which are also rising through this period. Can you give us a feel on where that cost base should actually be landing, go out when you get the synergies and all the productivity has come through, everything is amortized? There's a lot of moving parts here, but where should we be thinking the cost base of the group should land?

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : Okay. So cost back should therefore settle substantially below the $835 million?

Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst : Okay. And when will that be achieved? So this is beyond 2024? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 14, 2022 / 12:00AM, BOQ.AX - Half Year 2022 Bank of Queensland Ltd Earnings Call