The deal will double the size of the regional bank’s retail arm, taking deposits to more than AUD 56 billion, and boost the division’s contribution to earnings to more than 50% from 36%. BoQ will fund the deal through an AUD 1.35 billion equity raise at AUD 7.35 a share.
Even with the deal, BoQ will still lag far behind the Big Four banks, which control about three-quarters of the lending market and have glided through the pandemic better than some of their international peers.
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