BOQ’s Positive Update on Loan Deferrals Eases Fears of Higher Loan Impairment Expenses in 2021

Bank of Queensland is smaller than its regional bank rival, Bendigo and Adelaide Bank, and is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying away from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost-to-income and returns on equity. Acquisitions do not appear likely for the bank in the near term.