It’s been something of a revolving door for the bank’s leadership recently. We take a closer look
The post Bank of Queensland (ASX:BOQ) share price in focus amid concerns over management churn rate appeared first on The Motley Fool Australia. –
The Bank of Queensland Limited (ASX: BOQ) share price has had an interesting time of late.
In addition to volatility in the broader market, the bank’s shareholders have also had to digest various management changes.
Let’s take a closer look at what’s been moving the Bank of Queensland share price.
Key appointments shake Bank of Queensland share price
Shares in the Bank of Queensland have been on shaky ground recently. They are down 3% in the past week and 1.8% in a month.
Earlier this week, the regional bank announced further changes to its executive makeup. Bank of Queensland advised shareholders it had made two new executive appointments to its leadership team.
The bank revealed a new chief risk officer in David Watts, who will assume the role in early 2022. Adam McAnalen, who is Bank of Queensland’s current chief risk officer, will shift to a new role.
In addition, the bank announced chief product officer Chris Screen will become group executive of business banking.
The recent leadership changes have raised questions on the bank’s churn rate from various market commentators.
Of particular concern was the departure of business group executive Fiamma Morton who was in the role for 15 months. Morton had replaced Peter Sarantzouklis, who assumed the role in August 2019, before leaving five months later in January 2020.
What else has been happening with Bank of Queensland?
In addition to leadership changes, the Bank of Queensland share price has had to deal with various other catalysts.
The regional bank has been under pressure after reports ME Bank could get a penalty of up to $100 million. It is alleged by ASIC that ME Bank made “false and misleading representations in letters to borrowers, and failed to notify customers when repayment rates changed”.
Bank of Queensland acquired ME Bank in early July for cash consideration of $1.325 billion.
Given the recent volatility, investors will be eagerly awaiting the bank’s full-year report in mid-October. Earlier this year, the bank reported a strong first half for FY21.
For the first half, Bank of Queensland recorded a 9% increase in cash earnings to $165 million and a 66% lift in statutory net profit after tax to $154 million.
Snapshot of the Bank of Queensland share price
Despite struggling these past few days, shares in Bank of Queensland have had a stellar year thus far.
Since the start of 2021, the bank’s share price has gained more than 20%. By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to claw 10% for the year.
The Bank of Queensland share price closed yesterday’s session at $9.05.
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Motley Fool contributor Nikhil Gangaram 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.