Bank of Queensland is continuing its aggressive expansion program with the opening of three branches in NSW today bringing its total branch network to 200 across five States and Territories.
The milestone openings of Coffs Harbour, Bankstown and Erina in New South Wales today highlight BOQ’s continued drive to increase its branch presence nationally.
BOQ Managing Director David Liddy said the Bank had now more than doubled its branch network in less than five years.
“Importantly, BOQ’s expansion has meant better service for our customers, more outlets and greater reach while also ensuring strong financial returns for our shareholders.
“We have come a long way in a short time, and the future looks very strong as the branch network is supported by our fast-growing Business Banking division and underpinned by competitive products and a national BOQ-branded ATM fleet of more than 2200 machines,” he said.
BOQ’s expansion started in 2001 when its branch network was only 93, entirely confined to Queensland. The Bank’s first branch under the new direction was at Coolum on Queensland’s Sunshine Coast, on 3 December 2001.
A further 107 branches have been opened since with 60 of these outside Queensland, including branches in Darwin and Perth.
Mr Liddy said by capitalising on the Bank’s unique Owner-Managed Branch (OMB) Model™ to spearhead the aggressive branch expansion program it is well on its way to reaching an interstate network of 75 branches by August 2006.
“Bank of Queensland is continuing to expand at a rapid pace with another 15 branches expected to open between now and the end of August,” Mr Liddy said.
“The Bank’s first interstate branch opened two years ago this July in Byron Bay.
“BOQ has continued on track with its interstate branch expansion, maintained margins while growing revenue through strong increases in lending and deposits.
“We are now seeing clear signs that a service-focused Bank with a sales-driven model and expanding footprint can make strong profits in an extremely competitive market.
“Customers are looking for a different banking experience and I will make sure it’s something BOQ can offer them, in addition to retaining our own existing customers through our excellent service, products and reputation,” Mr Liddy said.
BOQ’s Owner-Managers make a personal investment in the community in which they open a branch and are incentivised through revenue-sharing.
“This means we get the best of both worlds. We have local, customer service-focused branches with managers who are long-term members of their local communities while also creating wealth for the Bank and its shareholders as they increase their own bottom line,” Liddy said.
Some fast facts on BOQ’s growth since 2001:
- BOQ now has 40 branches in NSW, 16 in Victoria, 2 in ACT, 1 in Perth and 1 in Darwin.
- BOQ now has 144 Owner-Managed Branches and 56 Corporate branches.
- Two Corporate branches at Aitkenvale and Benowa have been transformed into OMBs.
- BOQ is now rated as one of the best customer-service banks in Australia.
- BOQ’s OMB model is the only genuinely franchised bank branch model in Australia.
- In 2001 BOQ’s net profit after tax was $24 million, while in 2005 it was $92 million.
- In 2001 BOQ’s cost-to-income ratio was 72.9 cents in every dollar, compared to 63.9 in 2005.
- In 2001 BOQ’s cash earnings per share were 38.2 cents, and in 2005 eps was 70.2 cents.
- In 2001 BOQ’s loan approvals amounted to $2.8 billion whereas in 2005 they reached $7.5 billion.
- BOQ’s assets under management have almost trebled over the same period, from $5.2 billion to $15.9 billion.
- And the share market has rewarded BOQ for the growth. BOQ’s share price in April 2001 was around $6 and now it is more than $13 while Market Capitalisation has more than trebled from $400 million in 2001 to more than $1.4 billion last week.