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Bank of Queensland SWOT and PESTLE Analysis

ID : 521293753| Feb 2023| 21 pages

COMPANY PROFILE -Bank of Queensland

Business Sector :Banking Operations

Operating Geography :Queensland, Australia, Global

About Bank of Queensland :

With its corporate office in Brisbane, Queensland, The Bank of Queensland is an Australian retail bank. The bank is among Queensland's oldest financial institutions. As The Brisbane Permanent Benefit Building and Investment Society, the current Bank of Queensland was founded in 1874. Retail Banking, BOQ Business, and Other are its three main operating segments. The retail banking division provides consumers with solutions through distribution channels for Virgin Money, owner-managed and corporate branch networks, direct channels, and third-party intermediaries. The BOQ Business division offers specialised business banking services such as commercial loans, equipment financing and leasing, cash flow financing, foreign exchange, interest rate hedging, transaction banking, and deposit options for businesses. The Treasury, Insurance, and Group Head Office segments are included under Other. The corporation revealed on June 2, 2022, that to commemorate the release of Bank of Queensland's brand-new app, myBOQ, the bank has teamed with Australian Olympic gold medalist Ariarne Titmus to showcase the quick and convenient new features users will embrace.

Bank of Queensland's (BOQ) unique selling proposition lies in its being one of Australia's top regional banks that have more than 160 branches across the country and one of the few that is still not owned by one of the major banks. The mission statement of Queensland reads, "to become Australia's most loved bank. It's no walk in the park but it's how we go about things that will make it possible. We're doing it by getting face-to-face, one-to-one and creating real long-lasting relationships with our customers".

Bank of Queensland Revenue :


$ 1,253 million - FY ending 31st August 2021 (y-o-y growth 13.9%)
$ 1,100 million - FY ending 31st August 2020

Competitive Analysis of Bank of Queensland

SWOT
PESTLE
The SWOT analysis for Bank of Queensland is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Significant presence in Australia with 158 branches and 1.5 million customers in every state and territory.
2. Multi brand portfolio provides competitive advantage in niche segments.
3. Growth in lending across all the business segments.
4. Increase in the customer deposits shows the trust of the bank among customers.
5. Decent loan to deposit ratio puts the company in a good position.
1. Poor performance in the insurance business led to divestment and loss.
2. High lending exposure to the residential mortgage and construction industry can affect the credit risk.
OpportunitiesThreats
1. Moving to cloud based digital platform can help in improving customer experience in retail banking.
2. Automating processes can help in improving the operational efficiency.
3. Strategic partnerships with chosen ecosystems can help the company in improving its services.
1. Bad loans can affect the financials of the company.
2. Change in regulations can affect the operations of the company.
3. Rise in covid-19 cases can increase in financial arrears.
4. Economic downturn can affect certain segments to which the business of the company is exposed.
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Bank of Queensland

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

1. Poor performance in the insurance business led to divestment and loss: In October 2021, BOQ bid farewell to its insurance arm, St Andrew’s, after an agreement was signed to sell it to Farm cove for $23 million. The agreement was signed subject to certain conditions which included APRA’s regulatory approval. The deal got the approval and is now sealed as there are no remaining conditions for completion of the sale. In a statement, BOQ said it expects the transaction to result in an indicative post-tax statutory loss on sale of around $26 million and be broadly neutral to its Common Equity Tier 1 ratio. Before the sale, the insurance arm of the bank contributed only $7 million to the non-interest income in FY 21 which was a decrease of around 36% in comparison to FY 21. The insurance arm was underperforming in comparison to the other business segments.

The remaining section under "Weakness" is available only in the 'Complete Report' on purchase.

Opportunity

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Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • National Australia Bank Limited
  • Bendigo Bank Limited
  • Australia and New Zealand Banking Group
  • Westpac Banking Corporation
  • Bankwest

Major Brands :

  • ME Bank
  • Virgin Money Australia
  • BOQ Credit Pty Ltd
  • BOQ Finance (NZ) Limited
  • BOQ Specialist Pty Ltd
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TABLE OF CONTENTS
DELIVERY AND FORMAT
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References used in Bank of Queensland SWOT & PESTLE Analysis Report

1. Annual Report - https://www.boq.com.au/content/dam/boq/files/shareholder-centre/financial-results/2021/annual-report-2021.pdf
2. APRA approves St Andrew's Insurance sale to Farmcove - https://www.insurancebusinessmag.com/au/news/breaking-news/apra-approves-st-andrews-insurance-sale-to-farmcove-314418.aspx
3. Government introduces the Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 - https://www.allens.com.au/insights-news/insights/2020/11/government-introduces-the-financial-sector-reform-hayne-royal-commission-response-bill-2020/
4. Australia raises rates by most in 22 years to battle surging inflation - https://www.ft.com/content/b6f57a30-5790-4bf7-83f6-521ae5a3b314
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2024). Bank of Queensland SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/bank-of-queensland/ [Accessed 01 May, 2024].

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Bank of Queensland SWOT and PESTLE analysis has been conducted by Sushil Kumar Panda and reviewed by senior analysts from Barakaat Consulting.

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