Investor Presentaiton
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Funding strategy
Current Balance Sheet Composition of Acquired Businesses
Additional
Liquidity
$1.2bn
Target Liquidity
$0.4bn
Target
15%
Lending
$2.3bn
HQLA¹
Capital
$0.1bn
Wholesale Funding
$0.3bn
Securitised
Liabilities
$0.8bn
Deposits
$2.7bn
Assets
(as at 28-Feb-2014)
Liabilities
(as at 28-Feb-2014)
Source: Acquired Businesses' management. Information as at 28-Feb-2014.
BOQ Funding Strategy Over Time
Deposits have historically been a high cost funding source
Estimated excess liquid assets of approximately
$1.2bn at completion
Excess liquidity to be actively reduced over a period of up
to 12 months
One-off balance sheet transitional costs of
approximately $6m (post-tax) to unwind by the end
of FY15(2)
Approximately $1.0bn of the deposit book is priced in line
with BOQ's term deposit portfolio
Remainder to be re-priced at deposit maturity date
1 High quality liquid assets ("HQLA").
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² Reflects the negative carry earnings impact from the run-down of the excess deposits held above gross lending assets acquired through the transaction.
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