The Bank of Queensland Limited (ASX: BOQ) share price continues to go from strength to strength. Does the recent update provide any signs of further growth in the BOQ share price?
BOQ is one of Australia’s leading regional banks that provides retail and commercial banking services. It recently acquired ME bank.
BOQ share price
BOQ buoyed by improving conditions
The bank says operational improvement and strong housing loan growth has driven business momentum.
Also, margins continue to increase from 1.92% for 2H FY20 to 1.95% for 1H FY21.
ME bank acquisition
BOQ advises the acquisition of ME bank has progressed quite well and regulatory approvals are underway.
It’s great to see the potential lift in customers and market share but I think the hidden value lies in the technology. The acquisition enables BOQ to accelerate its digital strategy.
Given the high level of competition in improving the customer experience, this acquisition will provide more resources to deliver a better customer experience.
My take
BOQ has also indicated its commitment to a dividend payout ratio target range of 60-75% of cash earnings, which is subject to several factors.
It seems like the bank is hitting the right notes and once it establishes a fully-fledged platform, the value will flow to the bottom line.
Despite improving conditions, I tend to focus on companies that are less exposed to economic conditions as part of the Rask Investment Philosophy.
If you want to find out what BOQ shares are potentially worth, you can click right here.
