Key points
- The Bank of Queensland share price has fallen 15.4% over the last six months
- Meanwhile, the ASX 200 is down just 5.5%, leaving the bank’s stock trailing the index by around 9.9% in that timeframe
- The Bank of Queensland’s struggles were seemingly spurred by the release of its financial year 2021 results
The Bank of Queensland Limited (ASX: BOQ) share price still hasn’t recovered from its disastrous performance over October and November.
Its stock fell 18% over the two-month period. Since then it has recovered just 4%, leaving it 15.4% lower than it was six months ago. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has fallen 5.5%.
As of Friday’s close, the Bank of Queensland share price is $7.97.
Let’s take a look at what’s been impacting the ASX 200 bank’s stock in recent months.
What’s weighed on the Bank of Queensland share price lately?
There’s been a few notable happenings that have dragged the Bank of Queensland share price lower over the last six months.
The release of its results for financial year 2021 was the biggest culprit. The bank’s stock tumbled 4% in October after publishing its results.
While its performance was strong in financial year 2021, its outlook for financial year 2022 appeared to disappoint the market.
The bank said it expects its net interest margin to drop by between five and seven basis points this financial year. However, it declined to provide earnings guidance because of the uncertain environment.
The Bank of Queensland hit another speedbump later that month – though, this time it was expected. It fell 2.6% when it passed its ex-dividend date.
Additionally, the bank completed the sale of its St Andrew’s Insurance business in October. Farmcove Investment Holdings paid $23 million for the business.
The sale is expected to see Bank of Queensland posting an indicative post‐tax statutory loss on sale of around $26 million in its half-year results.
Between then and now, the bank’s stock redeemed 4.2% on the release of a positive trading update. It reported strong growth in the first quarter of financial year 2022 and plans to reduce its expenses.
Though, there’s still a while to wait before the market hears more on the Bank of Queensland’s performance. Its earnings for the first half of financial year 2022 are set to be released in April.
The post The Bank of Queensland (ASX:BOQ) share price has underperformed the ASX 200 by 10% over the last 6 months. Here’s why appeared first on The Motley Fool Australia.
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More reading
- Own Bank of Queensland (ASX:BOQ) shares? This broker sees 27% upside in 2022
- Goldman tips Bank of Queensland (ASX:BOQ) share price to rise 25%
- What’s happening to ASX bank shares today?
- What do rising bond yields mean for the Bank of Queensland (ASX:BOQ) share price in 2022?
- How are ASX bank shares performing today?
Motley Fool contributor Brooke Cooper 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 Bruce Jackson.
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