What Happened to the Bank of Queensland Ltd Share Price?
Shares in Bank of Queensland Ltd [ASX:BOQ] enjoyed a welcome pop today, outperforming a buoyant Aussie stock market to close up by nearly 3%. After a torrid September for Bank of Queensland – alongside all of its banking peers – the stock has now recovered to be back in the green for 2014.
Why Did This Happen to BOQ Shares?
This morning BOQ reported a very solid full-year result. Cash earnings grew by 21%, more than what most analysts predicted. Funding costs and bad debts both fell, which supported a strong net interest margin.
Bank of Queensland’s real star performer, though, was business lending. The bank is outperforming its peers on this front…and the market is recognising that by bidding up BOQ’s share price.
What Now for Bank of Queensland Ltd?
Investing in a second-tier financial institution like Bank of Queensland is usually a riskier proposition than buying shares in the big four. But that extra risk can provide the potential for stronger investment returns…particularly if the company can keep delivering profit growth as pleasing as this.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
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The post Why Bank of Queensland Ltd Shares Bounced Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
