The Bank of Queensland Ltd (ASX: BOQ) share price has suffered heavily over the past year, with a drop of 20% in the last year, as we can see on the chart below.
It has done much worse than other ASX bank shares in the last 12 months.
Over the same period, the Commonwealth Bank of Australia (ASX: CBA) share price has gone up around 5.75%.
The Westpac Banking Corp (ASX: WBC) share price went up 4.7%.
The National Australia Bank Ltd (ASX: NAB) share price is down 7.6%.
The ANZ Group Holdings Ltd (ASX: ANZ) share price has risen 4.75%.
The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has fallen 7.4%.
These numbers compare to a 7% rise for the S&P/ASX 200 Index (ASX: XJO).
What's gone wrong for the Bank of Queensland share price?
Writing on The Bull, Damien Shaw from Marcus Today analysed the situation:
BOQ has entered into voluntary enforceable undertakings with the Australian Prudential Regulation Authority (APRA) and AUSTRAC to address the remediation of weaknesses and issues. BOQ is up against fierce competition for mortgages and deposits. The bank reported a statutory net profit after tax (NPAT) of $4 million in the first half of fiscal year 2023, down 98 per cent on the prior corresponding period. Two big, one-off non-cash items impacted NPAT.
The 98% fall in profit was painful, though cash earnings only declined by 4% year over year if the two large one-offs are excluded.
Is this an opportunity to buy stock?
Shaw certainly doesn't think so. He rated Bank of Queensland shares as a sell, despite the heavy sell-off over the past year.
However, not everyone is negative on the bank.
Commsec has collated a number of recommendations from analysts. At the moment, there are two buy ratings, three sell ratings, and nine hold ratings. So, hold is by far the consensus view right now.
Using the projections on Commsec, the BOQ share price is valued at under 10x FY24's estimated earnings, with a possible grossed-up dividend yield of 10.8% for the 2024 financial year.
In the bank's outlook statement which was delivered with the HY23 result, it said it expects to see "heightened competition continuing as well as escalated deposit competition".
