Bank of Queensland (BOQ) had a near death experience during the depths of the GFC but according to Charlie Aitken the outlook is now a lot rosier

Bank of Queensland (BOQ) had a near death experience during the depths of the GFC but according to Charlie Aitken the outlook is now a lot rosier. Regional banks trade on a discount to the Big Four primarily because they have a higher cost of capital and are required to hold more capital against their loan books. There are, however, a few tailwinds that Aitken says are favourable for BOQ. 1) Capital ratios could be equalised in the upcoming banking inquiry. 2) Aitken notes recent data indicates that an economic recovery in Queensland is starting to take hold, its lagging NSW by about 12 months. 3) Most of the big banks are under exposed to QLD, making BOQ a possible corporate target. Aitken says these factors along with tailwinds such as sustained low cash rates and good management make BOQ one of his preferred picks. Video here (VIEW LINK)


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