Street View: Bank of Queensland faces competitive environment, higher expenses

Bank of Queensland

11/10/2023 21:18

** Shares of Australian lender Bank of Queensland  BOQ.AX 
slumped after co reported 70% fall in profit attributable for
the year  
    ** Co flagged elevated costs of living and sustained higher
interest rate as key risks in FY24 
    
    AT COST DISADVANTAGE FROM PEERS; OPERATING MARGINS LOW  
    ** Jefferies ("underperform", PT: A$4.8) slashes FY24/25 and
FY26 earnings estimates on negative operating leverage
associated with co's NIM changes dragged by a smaller loan book 
    ** Morningstar ("medium", Fair Value: A$8) cuts FY24 NIM
forecasts by 20 basis points to 1.55%, reflecting competitive
environment, increase in operating expense forecasts amid
sustained inflationary pressures
    ** MAQRO ("buy", TP: A$8.41) expects negative earnings
revision of 2%-3% for FY24 and future periods
    ** Citi ("neutral", TP: A$5.20) keeps FY24 earnings view
unchanged on better revenue assumptions, NIM set to trough
earlier than anticipated before stabilizing 

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com))