BOQ SECURES INVESTEC DEAL AND POSTS RECORD PROFIT

Written on the 11 April 2014

BOQ SECURES INVESTEC DEAL AND POSTS RECORD PROFIT BANK of Queensland (ASX:BOQ) has signed a deal to acquire Investec Bank for $440 million, with shares in a trading halt following the announcement.

BOQ will fund the transaction through a fully underwritten accelerated renounceable entitlement offer plus excess capital.

Managing director and CEO Stuart Grimshaw (pictured) says it allows the company to diversify geographically, as well as in the industry.

“The acquisition provides BOQ with an opportunity to obtain a leading position in attractive specialist segments, delivering access to a client base consisting primarily of medical, dental and accounting professionals.

“We are also excited by the strong alignment of staff and the internal culture to BOQ,” he says.

“Both organisations share a strong client-focus which is highly valued by the busy professionals who form their customer base.”

The acquisition is expected to deliver a two per cent increase on cash earnings per share in FY15 and four per cent in FY16.

BOQ also reported a record first half-year result this morning, with $140.2 million in cash earnings after tax.

Statutory profit after tax rose 34 per cent to $134.7 million, enabling the board to set an interim dividend of 32 cents per share fully franked.

Grimshaw says it’s a clear indication the bank’s strategy is working – despite highly competitive market conditions.

“Our performance over the half shows we are successfully executing our strategy and proactively managing the levers available to us to deliver results.

“We maintained a focus on profitable growth rather than compromising margins or risk standards, building momentum in our new customer distribution channels, tightly controlling expenses while investing in future growth and building our customer-focused culture,” he says.

The acquisition is expected to be completed by the end of this financial year, subject to regulatory approvals.

Trading resumes on April 16.


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter