Asian buyer rumoured for BOQ

Bank of Queensland's endeavours to drum up a strategic partner, perhaps by selling itself outright, continue to crawl along.

The Street Talk column in the Financial Review today reports that "a small handful of interested parties" signed non-disclosure agreements, with this group "tipped to include Asian financial services companies", so maybe BOQ has persuaded a Singapore bank or two to take a closer look.

In a letter to shareholders following the bank's half-year profit, and published via the ASX yesterday, BoQ chairman Neil Summerson reiterated the key themes of the board's review.

"The bank has ... been examining the best way for it to play a role in the consolidation of the Australian financial services industry, be this through continual acquisition growth, or introducing a strategic partner, complementary merger opportunities or another means of participation.

"The bank continues to talk to a range of parties about various ideas and concepts and we have processes in place to examine opportunities if they arise and to move quickly to capitalise on them."

Speculation ebbs and flows that the bank is in talks with Suncorp, which is also Queensland-based, also has its banking business under review and which also needs to hire a new chief executive.

In a reference to the outlook Summerson also wrote in his letter that "economic conditions continue to be challenging for banks and their shareholders as share prices remain volatile and profits are tested in these uncharted times.

"Australian companies are not yet 'out of the water' and there is still much to be done to adapt to the changing business environment …. We expect to continue to grow all aspects of our business ahead of our competitors while maintaining pricing and credit disciplines."

In April, BoQ reported that first-half net profit fell 25 per cent to $46.3 million. The bank reduced its interim dividend by nine cents to 26 cents per share.