There was a telling moment of exasperation in Bank of Queensland’s annual result presentation last week.
, Jefferies analyst Matthew Wilson could offer only a strained “thank-you” after chief executive, and former chairman, Patrick Allaway danced around his query.Mr Wilson, who has an “underperform” rating on the bank, wanted to know why BoQ believed it would eventually receive excess returns above the cost of equity on mortgages, especially as competition looks to heat up.“If banks write business that does not provide a more economic return, they won’t be here.
Only this year, the bank has ejected George Frazis as CEO, after a falling out with the board and former chairman Mr Allaway. Regulators have exposed its. BoQ even unveiled a $79 million cost hit from the continuing integration of ME Bank and a restructure that would meanCash profit fell 8 per cent, further than anticipated, to $450 million in the year to August.
UBS analyst John Storey questioned if the target return on equity rate of 9.25 per cent is attainable because of its reliance on factors outside BoQ’s control.
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