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Bank of Queensland Limited ABN 32 009 656 740. AFSL No 244616.
VIMPI JUNEJA, GROUP EXECUTIVE PRODUCT & STRATEGY, BOQ
Chief Strategy Officer Summit, Sydney Australia6 September 2016
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Are you clear about your goal; your obstacles?
Does your plan align the head, heart and hands of your
organisation?
Have you put your resources where your strategy is?
Is your resource allocation strengthening your strengths
or strengthening your weaknesses (by weakening your
strengths)?
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Strategy is a plan to overcome
obstacles to reach a goal.
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Outperform sector EPS
growth over the long-term.
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+26%
Source: Company reports
NIM CTI Cost of Deposits Mortgage Risk Weighting
2.52%
1.97%
46%
38%
Majors
BOQ
FY16H1 Financial Metrics: BOQ versus Majors
(55) bps
+700 bps2.33%
2.18%
+15 bps
18%
44%
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What we need to do to reach our goal?What are our obstacles?What is our goal?
Outperform sector EPS
growth over the long-term
Lower NIM
Less non-interest income
Higher cost of deposits
Higher cost of doing business
• Grow higher margin segments: SME, BOQS
• Grow higher margin products: BOQF, Personal loans
• Increase Markets income
• Expand credit cards; insurance; acquiring x-sell
• Reduce fee leakage
• Increase transaction deposits
• Optimise term deposit pricing
• Automate manual processes
• Consolidate functions; reduce duplication
• Eliminate waste
BOQ Majors
NIM 1.97% 2.52%
BOQ Majors
OOI 29 bps 54 bps
BOQ Majors
COF 2.33% 2.18%
BOQ Majors
CTI 46% 38%
and/or
and/or
and/or
1
2
3
4
5
6
7
8
9
10
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Retail Banking ‘double down’
Accelerate Business Banking
Digital Break-in and Niche
Fast Revenue Payback
Fortress Queensland
• What does it look like?
• What benefits would it deliver?
• What would you have to believe?
• What are the risks?
ALTERNATIVE EXECUTION PLANS
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Is there a profitable marketopportunity?
Do we have the capabilities to win?
Do we have the passion?
MBA strategy HANDSHEAD
HEART
Sweet spot
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Focus on niche segments that value a more intimate banking relationship
Vision …
Strategy …
Strategic pillars …
Customer in charge Grow the right wayThere’s always a
better wayLoved like no other
Target segments …
Retail banking
Heartland
Business banking
Micro SMEMid-marketProperty
Niche
HealthcareAged careAgri Franchises
Professional Services
Hospitality & Tourism
Asset-Intensive
Aussie AchieversToday’s Families
Leading LifestylesMetro-techs
Making it easier for our customers to
deal with us in the way they prefer
Getting the right balance between
risk and return
Having efficient systems and
processes
Improving our talent, capability
and culture
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Source: “How to put your money where your strategy is,” McKinsey & Company, March 2012
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Source: “How to put your money where your strategy is,” McKinsey & Company, March 2012
• Anchoring bias
• Loss aversion
• Corporate politics
Common barriers
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Process automationCustomer experience
“Can’t invent it here”“Not invented here”
Specialisation, focusScale, universal
NimbleBureaucratic
Treated like a personTreated like a number
Major Banks
Basis of advantage
Customer proposition
Digital focus
Innovation philosophy
Culture
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The material that follows is a presentation of general background information about Bank of
Queensland Limited’s (BOQ’s) activities at the date of this document. BOQ does not warrant
the accuracy or completeness of the information contained in this document and has no liability
for any reliance by any party on the information contained in this document or for any direct or
indirect, special, consequential losses or punitive damages under any cause of action, whether
in contract, tort, under indemnity or statute (including for loss of data, loss of reputation, loss of
business opportunity or loss of anticipated savings) in connection with this document. It is not
intended to be relied upon as advice to investors or potential investors and does not take into
account the investment objectives, financial information or needs of any particular investor.
All information contained herein is confidential and proprietary to BOQ. No part of this
document may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopying, recording or information retrieval systems, except where
expressly permitted by BOQ.
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