2021 Half Year Results Presentation 2 1H21 RESULTS PRESENTATION 15 April 2021

1H21 INVESTOR MATERIALS 15 April 2021 Half Year ended 28 February 2021 BANK OF QUEENSLAND LIMITED ABN 32 009 656 740. AFSL NO 244616. CONTENTS 1H21 RESULTS PRESENTATION ABOUT BOQ 1H21 RESULTS PORTFOLIO QUALITY CAPITAL, FUNDING & LIQUIDITY DIVISIONAL RESULTS ECONOMIC ASSUMPTIONS 330 34 38 45 52 56 2Bank of Queensland Limited 2021 Half Year Results Presentation 1H21 RESULTS PRESENTATION 15 April 2021 Half Year ended 28 February 2021 BANK OF QUEENSLAND LIMITED ABN 32 009 656 740. AFSL NO 244616. AGENDA INTRODUCTION Cherie Bell, General Manager Investor Relations RESULTS OVERVIEW George Frazis, Managing Director and CEO FINANCIAL DETAIL AND PORTFOLIO QUALITY Ewen Stafford, Chief Financial Officer and Chief Operating Officer SUMMARY & OUTLOOK George Frazis, Managing Director and CEO Q&A George Frazis, Managing Director and CEO Ewen Stafford, Chief Financial Officer and Chief Operating Officer 4Bank of Queensland Limited 2021 Half Year Results Presentation RESULTS OVERVIEW GEORGE FRAZIS MANAGING DIRECTOR AND CEO 1H21 OVERVIEW 1. Statutory profit growth of 66%, cash net profit up 9%, and EPS growth of 3%1, reflecting strong growth whilst managing margin, costs and lower impairments 2. Good business momentum, with strong housing loan growth of 1.6x system and improved NIM to 1.95% 3. Delivering on the strategic transformation, over the last three halves, with go live of the first phase of the retail digital banking platform, and acquisition of ME Bank announced 4. Asset quality remains sound, reflected by loan impairment expense to GLAs reducing to 10bps and arrears reducing over the half. Prudent provision levels maintained 5. Capital strength to support business growth and transformation investment with CET1 of 10.03% 6. 1H21 interim dividend of 17cps declared, inclusive of new shares issued through the capital raise, representing a 66% payout ratio2 (1) On prior comparative period. The basic cash earnings per share for all prior periods have been adjusted for the effects of the Group’s capital raise in March 2021 (2) Dividend payout ratio is based on half year cash earnings. Record date for the 1H21 interim dividend is 6 May 2021. Bank of Queensland Limited 2021 Half Year Results Presentation 61H21 RESULTS HIGHER CASH PROFIT DRIVEN BY STRONG ASSET GROWTH AND GOOD MARGIN MANAGEMENT Key financial results 1H21 154 2H20 22 1H20 93 1H21 vs 2H20 1H21 vs 1H20 Statutory net profit after tax ($m) Cash earnings after tax ($m) Cash return on average equity Common Equity Tier 1 ratio 600% 123% 440bps 25bps 124% 183% 66% <ul style="display: flex;"><li style="flex:1">9% </li><li style="flex:1">165 </li><li style="flex:1">74 </li><li style="flex:1">151 </li></ul>7.8% 10.03% 34.3c 17c 3.4% 9.78% 15.3c 6c2 7.5% 9.91% 33.3c 6c2 30bps 12bps 3% Cash earnings per share1 Dividend per share 183% (1) The basic cash earnings per share for all prior periods have been adjusted for the effects of the Group’s capital raise in March 2021 (2) BOQ paid a FY20 dividend of 12c, which represented 6c from 1H20 profits and 6c from 2H20 profits Bank of Queensland Limited 2021 Half Year Results Presentation 7KEY ELEMENTS OF THE RESULT INCOME GROWTH WITH IMPROVED PRODUCTIVITY AND NORMALISED IMPAIRMENTS <ul style="display: flex;"><li style="flex:1">NET INTEREST INCOME ($M) </li><li style="flex:1">NET INTEREST MARGIN (%) </li></ul>+2% +3bps 512 503 485 483 1.95 <ul style="display: flex;"><li style="flex:1">1.92 </li><li style="flex:1">1.92 </li></ul>1.89 <ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul><ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul>COST TO INCOME RATIO (%) LOAN IMPAIRMENT EXPENSE ($M) -30bps -84% 147 28 41 24 123 10 28 226 331 21 54.3 51.8 54.1 53.8 (4) <ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H201 </li></ul>Specific <ul style="display: flex;"><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul><ul style="display: flex;"><li style="flex:1">Collective </li><li style="flex:1">COVID-19 </li></ul>2H19 18bps <ul style="display: flex;"><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul>Loan Impairment to GLA <ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul><ul style="display: flex;"><li style="flex:1">12bps </li><li style="flex:1">62bps </li><li style="flex:1">10bps </li></ul>(1) 1H20 includes a $10m collective provision overlay in respect of COVID-19 8Bank of Queensland Limited 2021 Half Year Results Presentation LENDING AND DEPOSIT GROWTH STRONG TURNAROUND IN HOUSING WITH BALANCED GROWTH IN NICHE BUSINESS SEGMENTS <ul style="display: flex;"><li style="flex:1">GROWTH IN CUSTOMER DEPOSITS ($M) </li><li style="flex:1">GROWTH IN LENDING GLAS ($M) </li></ul>2,445 1,065 72 782 437 1,062 1,459 1,205 (113) 45 58 (36) 10 19 237 481 549 429 3363 102 272 507 (7) 997 1,433 (193) 2H20 331 (70) 611 214 <ul style="display: flex;"><li style="flex:1">1</li><li style="flex:1">22 </li></ul>(23) 1H21 (31) (374) <ul style="display: flex;"><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li></ul>2H19 <ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H20 </li></ul>Retail Bank 1H21 1<ul style="display: flex;"><li style="flex:1">Housing </li><li style="flex:1">Asset finance </li><li style="flex:1">Commercial </li><li style="flex:1">Consumer </li></ul><ul style="display: flex;"><li style="flex:1">Business Bank </li><li style="flex:1">Other Deposits </li></ul>GROWTH IN BUSINESS BANKING GLAS ($M) GROWTH IN HOUSING GLAS ($M) 332 507 102 997 1265 80 91 310 363 459 339 228 189 <ul style="display: flex;"><li style="flex:1">22 </li><li style="flex:1">19 </li></ul>30 42 <ul style="display: flex;"><li style="flex:1">225 </li><li style="flex:1">(273) </li></ul>489 49 <ul style="display: flex;"><li style="flex:1">459 </li><li style="flex:1">445 </li></ul>62 83 49 (441) <ul style="display: flex;"><li style="flex:1">(93) </li><li style="flex:1">(7) </li></ul>(682) 9<ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul><ul style="display: flex;"><li style="flex:1">2H19 </li><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li></ul>BOQ Commercial 1H21 Asset Finance 2<ul style="display: flex;"><li style="flex:1">Virgin Money </li><li style="flex:1">BOQ Specialist Housing </li><li style="flex:1">BOQ Housing </li></ul>BOQ Specialist Commercial (1) Other deposits mainly includes treasury deposits (2) BOQ Housing includes housing loan growth in both the Retail Bank and BOQ Business 9Bank of Queensland Limited 2021 Half Year Results Presentation DIVISIONAL ACHIEVEMENTS RETAIL BANK BOQB BOQB Loan Growth ($m) Housing Loan Growth ($m)1 Deposit Growth ($m) Deposit Growth ($m) 293 795 1,433 1,205 131 19 72 22 58 51 611 202 214 2H20 Asset Finance 1H21 (50) 2H20 2<ul style="display: flex;"><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul><ul style="display: flex;"><li style="flex:1">Commercial </li><li style="flex:1">Housing </li></ul><ul style="display: flex;"><li style="flex:1">2H20 </li><li style="flex:1">1H21 </li></ul>1H21 • Retail Bank has delivered improved performance turnaround since FY19 • Continued focus on niche segments • BOQ Housing loan growth of 1.6x system and accelerating • BOQ Business has delivered growth for the half in a contracting market • Deposit growth increased by $214m driven by growth in transaction and savings • Deposit growth increased by $611m driven by growth in transaction and and investment accounts savings and investment accounts • Application volumes have increased significantly through increased branch and • Enhanced customer experience, SME NPS5 ranked 3rd (up from 4th in FY19) broker productivity • Supporting SME customers through the economic recovery with a personalised • Consumer NPS ranked joint 4th (up from 5th in FY19), Mortgage NPS ranked 3rd approach (up from 11th in FY19)3 • Asset quality remains strong with 97% of SME loans on Banking Relief • ‘Time to conditional yes’ standards maintained despite volume increases returning to performing status6 and improved arrears during the half • Additional 6 Owner Managed branches from corporate conversions and 1 new branch opening during 1H21 • VMA phase 1 digital bank launched in March 2021 providing transaction and savings accounts, integrated credit card and loyalty offering (1) BOQ Retail Bank housing loan growth includes BOQ Retail plus VMA (2) BOQB housing loan growth includes SME home lending plus BOQS (3) RFi XPRT Report, February 2021, August 2020 and February 2020. Note an additional competitor was added to the reporting suite in FY21. Excluding this, Consumer NPS would be 3rd in 1H21 (4) DBM Atlas BFSM Report February 2021. SME NPS refers to Any Financial Relationship (AFR) and businesses under $40m turnover (5) Banking Relief loan status as at 31 March 2021 10 Bank of Queensland Limited 2021 Half Year Results Presentation DELIVERING RESULTS AND EXECUTING THE TRANSFORMATION ROADMAP <ul style="display: flex;"><li style="flex:1">Key Metrics </li><li style="flex:1">1H20 </li><li style="flex:1">2H20 </li></ul>1H21 Jaws Negative jaws -5% 1.2x system Positive jaws +1% 0.2x system Positive jaws +1% <ul style="display: flex;"><li style="flex:1">1.6x system </li><li style="flex:1">Home lending system multiples1 </li></ul>Growth, margin and productivity Business lending system multiples1 <ul style="display: flex;"><li style="flex:1">1.6x system </li><li style="flex:1">Positive to system </li></ul>Lending growth in contracting system Margin 1.89% $15m 1.92% $15m 1.95% <ul style="display: flex;"><li style="flex:1">$13m </li><li style="flex:1">Productivity benefit </li></ul>Consumer NPS2 Mortgage NPS2 Business NPS3 <ul style="display: flex;"><li style="flex:1">3rd </li><li style="flex:1">3rd </li></ul>4th 3rd 3rd <ul style="display: flex;"><li style="flex:1">5th </li><li style="flex:1">5th </li></ul>Customer & banker experience <ul style="display: flex;"><li style="flex:1">4th </li><li style="flex:1">3rd </li></ul>4Employee engagement Time to ‘yes’5 56% 1 day 59% 1 day - 2 days Regulatory reporting program Lending system enhancements <ul style="display: flex;"><li style="flex:1"></li><li style="flex:1"></li></ul><ul style="display: flex;"><li style="flex:1">Upgraded BOQS mobile app </li><li style="flex:1">Migration of data centres to cloud </li></ul>Customer engagement platform Digital Bank Strength Delivery of core projects CET1 Contact Centre telephony platform  Build out intelligent data platform <ul style="display: flex;"><li style="flex:1">Treasury system upgrade </li><li style="flex:1">Risk & Regulatory program </li></ul>Phase 1 of retail digital bank 9.91%, $340m capital raise 9.78% 10.03% $1.35bn capital raise, funding the acquisition of ME Bank6 NSFR 112% 133% 69% 119% 164% 74% 118% 182% 74% LCR Deposit to loan ratio (1) Reflects the APRA definition of lending and will therefore not directly correlate to the balance sheet growth (2) RFi XPRT Report, February 2021, August 2020 and February 2020. Note an additional competitor was added to the reporting suite in FY21. Excluding this, Consumer NPS would be 3rd (3) DBM Atlas Report February 2021. SME NPS refers to Any Financial Relationship (AFR) and businesses under $40m turnover (4) Next employee engagement survey to be conducted in 2H21 (5) Time to ‘yes’ timeframes refer to time to conditional yes for branch originated PAYG loans (6) Proceeds from the capital raisings were received in March 2021 and are not included in the CET1 calculation for 1H21 Bank of Queensland Limited 2021 Half Year Results Presentation 11 BUILDING THE DIGITAL BANK OF THE FUTURE Foundational investment in a new cloud environment for BOQ’s digital transformation Phase 2 underway including home loans, expanded deposit and loyalty offering and Open Banking capability Launch of three new fully digital products Compelling and personalised loyalty offering First phase of the retail digital bank launched in March 2021 Leveraging common data architecture BOQ development commenced for new mobile app and loyalty offering Creating the Temenos retail banking common platform to be used by all brands Planning underway to integrate ME Bank onto the common platform Bank of Queensland Limited 2021 Half Year Results Presentation 12 ME ACQUISITION ON TRACK AND CAPITAL RAISE COMPLETED INTEGRATION PLANNING PROGRESSED AND REGULATORY APPROVALS UNDERWAY • Number of customers increases from ~900k to ~1.45m • Broadly doubles retail banking GLAs to over $57 billion Significantly enhanced scale and portfolio mix for profitable growth • Increases Retail net profit contribution from ~35% to greater than 50% • Strong customer-centric ME Bank brand aligned to BOQ’s multi-brand strategy • Differentiated customer segments and geographies with minimal overlap Strong complementary challenger brands with a shared customer centric culture • Re-balances BOQ’s East Coast presence (Qld GLAs reduce from 42% to 31% of BOQ’s loan portfolio, NSW increases to 29% and VIC to 21%) • ME, BOQ and VMA all with high Net Promoter Scores (NPS) • Expected to be low double-digit to mid-teens cash EPS accretive including full run-rate synergies in the first year (FY22)1 • Expected to be cash ROE accretive, over 100bps including full run-rate synergies in the first year1 • Full run-rate pre-tax synergy benefits of ~$70 - $80m expected Attractive financial outcomes • Acquisition provides opportunity to accelerate BOQ’s digital strategy • Common use of Temenos for retail core banking aligns to BOQ’s pathway to a single, multi-brand cloud-based digital Clear pathway to a cloud based common digital Retail bank technology platform platform • Leveraged capital investment across a broader base to deliver best-in-class customer experience • Delivering Temenos’s global innovation through continuous cloud upgrades 1. FY2022 pro forma EPS accretion on an underlying cash EPS basis assuming the Acquisition is effective from 1 September 2021. Excludes transaction and integration costs and amortisation of acquired intangibles. Calculated in accordance with AASB 133, Earnings per Share, with adjustments to reflect the bonus element of the Offer. Based on market consensus earnings for BOQ. Bank of Queensland Limited 2021 Half Year Results Presentation 13 EXPERIENCED LEADERSHIP TEAM GEORGE FRAZIS Managing Director and Chief Executive Officer CRAIG RYMAN Chief Information Officer DEB ECKERSLEY Group Executive People and Culture EWEN STAFFORD Chief Financial Officer and Chief Operating Officer •••Joined BOQ in September 2019 ••Joined BOQ in July 2020 •••Joined BOQ as Group Executive, P&C in September 2018 ••Joined BOQ in November 2019 More than 30 years’ of experience across financial services, telecommunications, eCommerce and logistics, commercial property and professional services <ul style="display: flex;"><li style="flex:1">More than 26 years’ of experience </li><li style="flex:1">More than 20 years’ experience in financial </li></ul>services, leading technology transformation programs. More than 20 years’ experience consulting to many of Australia’s leading organisations Previously CEO Westpac Group’s Consumer Bank, CEO St. George, CEO Westpac New Zealand Limited •<ul style="display: flex;"><li style="flex:1">Previously CIO and COO at AMP Limited </li><li style="flex:1">Previously Managing Partner at PwC, leading the </li></ul>Human Capital function •KPMG, MLC, NAB, Australia Post, Telstra, Deloitte •Started in the RAAF as an engineer then a partner at BCG ADAM MCANALEN Chief Risk Officer NICHOLAS ALLTON Group General Counsel and Company Secretary FIAMMA MORTON Group Executive BOQ Business MARTINE JAGER Group Executive Retail DANIELLE KEIGHERY Chief Customer Officer ••Joined BOQ in February 2021 ••Due to join BOQ in April 2021 ••Appointed to CRO of BOQ in June 2019 ••Joined BOQ in June 2020 ••Joined BOQ in January 2021 More than 25 years experience in Financial Services in Australia and the UK, most recently at MLC and Macquarie Previously held number of executive roles including CEO of RAMS, Chief Digital and Marketing Officer for Westpac Group and General Manager third party Mortgage Broking at St George Has held a number of senior leadership roles across the Business and Retail Banking, Finance, Operations and Risk divisions of BOQ Extensive experience in Banking in Australia and the USA, previously CBA, Goldman Sachs, MasterCard and Westpac Previously, Chief Experience Officer at Virgin Australia •Extensive Corporate Affairs, Brand, and Marketing experience Bank of Queensland Limited 2021 Half Year Results Presentation 14 FINANCIAL DETAIL & PORTFOLIO QUALITY EWEN STAFFORD CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER FINANCIAL PERFORMANCE CASH PROFIT UP IN THE HALF DRIVEN BY INCOME GROWTH AND LOWER LOAN IMPAIRMENT EXPENSE <ul style="display: flex;"><li style="flex:1">$ million </li><li style="flex:1">1H21 </li></ul>512 2H20 503 1H20 483 1H21 vs 2H20 2% 1H21 vs 1H20 6%

2021 Half Year Results Presentation 2 1H21 RESULTS PRESENTATION 15 April 2021

Details

Download

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

Support