Equity Analysis /
Australia

AU : Bank of Queensland - Sustaining the home lending turnaround

    Steven Sassine
    Steven Sassine

    Research Associate

    Azib Khan
    Azib Khan

    Senior Banks Analyst

    CGS-CIMB
    15 April 2021
    Published by

    BOQ has announced 1H21 cash NPAT of $165m, compared with our expectation of $166m and guidance of $163-166m. An interim dividend of 17cps, fully franked, has been declared in line with guidance and our expectation. The result had largely been pre-announced in February alongside the ME Bank acquisition announcement. The result is broadly in line with expectations at all levels. While the Company is targeting positive jaws of 1% for FY21, we are forecasting positive jaws of 2% for this year. Over coming months, we expect to see favourable revisions to consensus credit impairment charge forecasts and dividend forecasts for BOQ, and we consequently expect BOQ’s share price to increase towards our target price of $10.50. Retain Add recommendation.