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The Bank of Queensland (BoQ) will use its $340 million capital raising to build its residential and small business lending book as it attempts to break down the market share of the ‘big four’.
According to a report in The Australian Financial Review, the main capital raising was carried out through a $143 million institutional placement.
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The additional $197 million was raised through a retail and institutional one-for-nine entitlement offer.
BoQ managing director David Liddy said the raised funds would allow the lender to build its residential mortgage book and take advantage of strategic acquisition opportunities that emerged in the market.
“The big guys have grown mainly by two of them buying two of the biggest non-bank lenders in the market – that is where the consolidation has been happening,” Mr Liddy said.
“We have been growing above system in this crisis, so that means our growth, or the majority of our new business, has come from people leaving the other banks.
“I think it is a real credit to the smaller players that we have come through this crisis. I don’t think we are through the whole lot yet, but the worst is behind us.”
