Bank of Queensland Managing Director David Liddy announced firm plans for the Bank’s interstate expansion for the first time today, targeting a national home loan market share of five per cent in three to five years.
Mr Liddy, speaking at the release of record profit results for the 2003 financial year, said BOQ planned to open a total of 100 new branches across New South Wales and Victoria by August 2007.
“The time is right for us to expand our successful branch network interstate,” Mr Liddy said.
“We believe 100 new branches across New South Wales and Victoria will give us a significant and meaningful presence. We are also intending to enter the Northern Territory and ACT markets, which we believe our local-based model will be very well suited to,” he said.
“The release of the full-year results today highlight that Bank of Queensland has the fundamentals right with a very strong financial performance.
“The results also prove that our branch distribution model has been extremely successful in growing the bank’s market share in Queensland, and we expect that success to continue interstate,” Mr Liddy said.
“We have attracted the very best bankers across Queensland as owner-managers, and I expect to achieve similar success in other parts of Australia.”
Bank of Queensland will exceed its target of 130 branches in Queensland by August 2004, with the 130th branch now expected to be open by Christmas 2003.
“This network of 130 branches in Queensland gives us a very strong platform to move interstate.”
Mr Liddy said the success of the Bank’s branch model came down to the people the Bank selected to be owner-managers in each branch.
“All our research and experience to date indicates that the OMB model can be just as successful interstate as it has been here in Queensland,” he said.
“There is a demand, whether it is in Queensland, or anywhere in Australia, for a different style of banking. There is demand for personal service, for face-to-face banking by local managers who can make their own decisions.
“At Bank of Queensland, we call this “person2person” banking.
“Our research has indicated that the model will work very well regardless of which State the branch is located.
“Today’s announcement also means the creation of 400-500 new full-time-equivalent jobs in New South Wales and Victoria over the three-year roll-out,” Mr Liddy said.
“We are well advanced in our planning for the interstate expansion.”
Bank of Queensland does not expect to open interstate branches until the latter part of the financial year, ending on August 31, 2004.
“Our target, over the next three to five years, is to build from currently writing 2.5% of new home loans nationally, to five per cent. Today’s announcement is the first step in meeting that target,” he said.
Bank of Queensland holds 7.4 per cent of the Queensland home loan market, up from five per cent two years ago, and is now writing 13 to 14 per cent of all new home lending in Queensland.
The Bank already has an interstate footprint through its acquisitions of UFJ Finance Australia, a $1 billion equipment finance business with offices throughout Australia, and Melbourne-based third-party ATM machine provider ATM Solutions Australasia with more than 1000 ATMs across the country.
ATM Solutions Australasia has approximately 500 machines in New South Wales and Victoria.