Why is the Bank of Queensland share price pushing higher today?

The Bank of Queensland Ltd (ASX: BOQ) share price is on the move on Monday.

At the time of writing, the regional bank’s shares are up 1.5% to $6.50.

Why is the Bank of Queensland share price rising?

Investors have been bidding the Bank of Queensland share price higher today after the bank announced the appointment of its new CEO.

Potentially in an effort to ease investor nerves during the ongoing banking crisis, the bank has opted to name its current chairman, Patrick Allaway, as its new leader. This follows the exit of George Frazis, which was announced late last year.

This will be a relatively short term appointment, with Allaway taking on the roles of managing director and CEO until December 2024.

Replacing him as chairman will be Warwick Negus with immediate effect.

Why switch roles?

The company revealed that it believes the appointment will provide some stability in the current environment. It explained:

Mr Allaway’s appointment will provide stability and continuity during this period, enabling the management team to continue delivering BOQ’s priorities, as announced at the December 2022 AGM, of strengthening, simplifying, digitising, and optimising BOQ.

It also revealed that the search process for a long-term CEO will continue. This includes considering a wider pool of external candidates and the further development of internal candidates.

Commenting on his appointment, Allaway said:

I am honored to serve BOQ stakeholders in my new role and to play a part in our 150-year history. I will continue to lead by living our purpose and values and to progress our work to build an even stronger and better bank for our customers, our people, and our shareholders. Our focus is strong financial resilience whilst simplifying our operations and digitising for our future state.

We have made material progress in strengthening our capital and liquidity position over the past six months and have maintained quality lending portfolios as we prepare for a more challenging economic environment. BOQ has several programs underway to improve the effectiveness of our control environment and organisational efficiency, building a leaner more agile and digitally enabled bank.

The post Why is the Bank of Queensland share price pushing higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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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