The Bank of Queensland (ASX:BOQ) share price is having a good year. Here’s why.

The regional bank is putting together a strong year for shareholders…
The post The Bank of Queensland (ASX:BOQ) share price is having a good year. Here’s why. appeared first on The Motley Fool Australia. –

The Bank of Queensland Limited (ASX: BOQ) share price hasn’t been top of mind for many investors in recent months. Shares in the major banks have captured the headlines with the Commonwealth Bank of Australia (ASX: CBA) share price approaching a new all-time high and Westpac Banking Corp (ASX: WBC) shares racing higher.

However, the Bank of Queensland share price has been quietly having a good year on the ASX boards. Shares in the Aussie bank are up 19.3% year-to-date at yesterday’s closing price of $8.98. On a 12-month horizon, the news is even better, with the Bank of Queensland share price climbing 50.2% higher in that time.

So, what’s helping push this unsung ASX bank share higher in 2021?

Why the Bank of Queensland share price is soaring this year

It is worth noting 2021 has been a great year for many of the ASX bank shares. As mentioned, Commonwealth Bank and Westpac shares are enjoying strong years, climbing 18% and 28.7%, respectively.

One big factor helping these share gains for ASX banks is the current state of the economy. The Aussie banks’ major lending activities are in the property market, leaving them exposed to economic factors such as interest rates and employment.

A key statistic that investors focus on for bank shares is bad debts expense. Investors like to see that losses are low, and the advent of a post-COVID recovery and schemes such as JobKeeper have helped keep this key ratio low.

That has coincided with strong gains for the Bank of Queensland share price. Shares in the regional bank have been climbing since late May 2020, aided by strong government stimulus to reduce the economic pain felt from the COVID-19 pandemic. Other factors like record-low interest rates and strong employment data have also played their part.

An improved outlook for the Aussie economy has also helped the bank free up some capital. In mid-June, Bank of Queensland announced that it would reduce its collective provision by a further $75 million. That frees up further capital to be deployed by the Aussie bank, rather than just being held for regulatory provisions.

The bank recently completed its $1.325 billion takeover of ME Bank which it hopes will allow it to compete with the Big Four banks moving forward.

Foolish takeaway

The Bank of Queensland share price has been having a solid year. Shares in one of Australia’s largest regional banks have been quietly climbing as the financial sector continues a strong year of gains in 2021.

The post The Bank of Queensland (ASX:BOQ) share price is having a good year. Here’s why. appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bank of Queensland right now?

Before you consider Bank of Queensland, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank of Queensland wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

The Bank of Queensland (ASX:BOQ) has officially acquired ME Bank
Bank of Queensland shares outperforming all ASX 200 banks this month

Why this broker reckons Bank of Queensland (ASX:BOQ) shares are a buy
Why Bank of Queensland, IGO, Milton, & Openpay are surging higher

Why are blue-chip ASX 200 shares selling off today?

Motley Fool contributor Ken Hall 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!