How has the Bank of Queensland share price travelled since the company’s half-year results?

Are Bank of Queensland shares in sync with the company’s financial performance? Let’s take a look.

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Key points

  • Bank of Queensland shares are advancing 1.44% today after recording seven consecutive trading days of losses
  • Since the company's results on 14 April, the Bank of Queensland share price has tumbled 13%
  • A couple of brokers believe there is still significant value in the company's shares

The Bank of Queensland Limited (ASX: BOQ) share price is edging higher on Friday, up 1.44% to $7.415.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is rebounding 1.74% higher to 7,061.9 points after yesterday’s sell-off.

Below, we take a look at the company’s financial metrics and how its shares have performed since it released its half-year results.

What did Bank of Queensland report for the first half of FY22?

Bank of Queensland delivered its half-year results for the 2022 financial year to the ASX on 14 April.

Across the board, the company recorded a robust scorecard with growth in several key areas. This included:

  • Total income increased 1% to $831 million
  • Cash earnings after tax lifted 14% to $268 million
  • Statutory net profit after tax (NPAT) soared 38% to $212 million
  • Common Equity Tier 1 (CET1) capital ratio fell 35 basis points to 9.68%
  • Interim dividend up 29% to 22 cents per share

The higher cash profit was underpinned by asset growth, cost discipline, and an improved portfolio quality from the business.

Bank of Queensland CEO and managing director George Frazis commented on the day:

Today’s result demonstrates our disciplined execution of the ME integration and digital transformation program and represents our fifth consecutive half of improved underlying performance.

This has been achieved during a period of ongoing economic uncertainty from COVID, and at a time of notable change as we bed down the integration of ME and upgrade our digital capability for customers and our people.

How has the Bank of Queensland share price reacted?

In the weeks since the company’s results, Bank of Queensland shares steeply declined before hitting a 52-week low yesterday.

However, a slight rebound has ensued today as bargain hunters take advantage of the share price weakness.

Nonetheless, the company’s shares are down almost 13% from this time last month when the first-half performance was revealed. It’s worth noting that its shares sunk 6.33% on the day of the release.

When looking at year to date, Bank of Queensland shares have registered a drop of 8%.

This comes off the back of seven consecutive days of losses as investors pull out money on fears of a global economic slowdown.

For comparison, the benchmark ASX 200 index has shed 5% in 2022.

What do the brokers think?

A couple of brokers weighed in on the company’s share price last month.

Analysts at Goldman Sachs cut their rating on the Bank of Queensland share price by 5.1% to $9.34.

Furthermore, Credit Suisse also slashed its price target by 12% to $10 apiece.

Based on the current share price, this implies an upside of roughly 26%, and 35%, respectively.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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