Here’s how Bank of Queensland is performing in FY 2022…
The post Bank of Queensland (ASX:BOQ) share price on watch amid FY22 guidance update appeared first on The Motley Fool Australia. –
All eyes will be on the Bank of Queensland Limited (ASX: BOQ) share price today.
Why is the Bank of Queensland share price on watch?
The Bank of Queensland share price will be on watch today after it released a trading update ahead of its annual general meeting.
According to the release, the regional bank has started FY 2022 in a positive fashion in respect to volume growth. It revealed that its growth momentum has continued throughout the first quarter, with strong application volumes across both the housing and business lending portfolios.
Furthermore, it advised that its housing portfolio across the Bank of Queensland and Virgin Money brands increased by ~$1 billion for the quarter, continuing above market growth. Whereas its ME Bank brand returned to growth for the month of November, with application volumes in the first quarter up 62% compared to the FY 2021 average.
Positively, management revealed that Business Banking lending grew by ~$200 million during the first quarter, with the asset finance business also performing well.
In addition, the company highlights that the growth in retail and business remains disciplined and high quality, with low levels of >90% LVR lending in mortgages and a focus on SMEs in the business bank.
Taking the shine off the update…
One slight disappointment, though not entirely unexpected, is that Bank of Queensland has not be immune to net interest margin (NIM) pressures from tougher trading conditions and increased home lending competition. As a result, its FY 2022 NIM is expected to be lower than previously guided.
But the good news is that management is aiming to offset this with a 1% reduction in expenses in FY 2022 through additional productivity benefits.
Bank of Queensland’s Managing Director and CEO, George Frazis, commented: “BOQ continues to execute on its strategy, digital transformation and the ME Bank integration. We remain firmly focused on delivering against our strategy to transform BOQ into a digital bank with a personal touch.”
Mr Frazis also revealed that the bank is reaffirming its FY 2022 guidance of at least 2% positive jaws (income growth exceeding expense growth).
The post Bank of Queensland (ASX:BOQ) share price on watch amid FY22 guidance update appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.