The Bank of Queensland Ltd (ASX: BOQ) share price is in the green today, up 1.2%, alongside the S&P/ASX 200 Index (ASX: XJO), which is trading around 1% higher.
Could the ASX bank share be getting a boost on speculation of possible takeover action?
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Potential BOQ takeover attempt?
In recent times, the market has seen ANZ Group Holdings Ltd (ASX: ANZ) launch a takeover effort to absorb the banking operations of Suncorp Group Ltd (ASX: SUN) to boost its Queensland presence and overall scale.
Federal treasurer Jim Chalmers recently gave ANZ the go-ahead for the takeover.
Meanwhile, multiple interested parties have considered the Bank of Queensland a potential takeover target, according to reporting by The Australian.
Those groups have reportedly not followed through (yet) after considering a possible deal.
Strategic review
A few months ago, the Queensland-focused ASX bank share launched a strategic review of the business.
The newspaper report suggested that the current BOQ share price was not compelling enough to enact a deal. Even so, those groups have still been considering the bank and its assets.
Some smaller banks, like BOQ, have difficulty trying to be as profitable as the major ASX bank shares.
Analysts' views on how BOQ could increase profitability after its strategic review included suggestions to become smaller and more margin-focused. It could also pursue securitising its loans more aggressively, make loans without financing them, or sell some assets.
However, some of those options may not be viable or preferred for the ASX bank share.
How much profit is the bank expected to make?
While BOQ's 2024 financial year is ongoing, the broker UBS forecasts the bank could generate a net profit after tax (NPAT) of $294 million. However, after that, UBS thinks BOQ's net profit could steadily rise in each financial year between FY25 and FY28. Growing profit could be helpful for the BOQ share price.
Analysts at the broker forecast the BOQ net profit to grow 8.8% to $320 million in FY25 and to $406 million by FY28. If both forecasts are correct, that would be a rise of 38% between FY24 and FY28.
Regarding the potential dividend payment, the forecast on Commsec suggests a possible annual payout of 33 cents per share in FY24 and 34 cents per share in FY25. That would translate into forward grossed-up dividend yields of 7.5% and 7.75%, respectively.
