Bank of Queensland's Capital Return Doesn't Shake Loose Bear
Dow Jones
Aug 11
2341 GMT - Bank of Queensland's plan for returning capital following its whole-of-loan equipment finance portfolio sale to Challenger doesn't change Jefferies's bearish view of the stock. Bank of Queensland intends to pay a special dividend of A$0.15/share. It also plans to buy back shares worth up to A$196 million on market. "While the capital return provides clarity on surplus capital deployment, we remain cautious on the medium-term outlook," says analyst Andrew Lyons. "Housing balances continue to decline, with growth increasingly reliant on (late-cycle) commercial real estate." Jefferies retains an underperform call on Bank of Queensland and lifts its price target by 0.7% to A$5.68/share. Bank of Queensland ended Monday at A$6.83.
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