BoQ directors jet to Israel for ‘fintech study tour’ after bank expenses clampdown

BOQ directors flew to Israel for a five-day ‘fintech and innovation’ tour just two months after the Qld bank advocated a tight rein on expenses including travel.

• Profits up but lending still below industry rates at BoQ

BOQ directors flew to Israel for a five-day “fintech and innovation” tour just two months after the Queensland bank advocated a tight rein on expenses including travel.

The international excursion has ticked off staff and unions given pressures back at home. The 180-branch BoQ, however, defended the rationale for the trip and maintained business-related costs were being carefully managed.

While BoQ’s earnings rose in the past half-year, the trip comes with bank analysts trimming profit expectations partly due to expectations of greater competition for new loans.

There’s also pressure from costs; BoQ’s operating expenses had risen 4 per cent to $262 million in the last half-year result, outstripping income growth of 3 per cent to $550 million. The bank at the time cited a continued program of searching for and extracting “efficiencies across the business”.

The Courier-Mail understands that BoQ, led by managing director Jon Sutton, had internally in May advocated a tightening of various costs. This included canvassing a potential clamp down on new hires and restrictions on travel and hospitality expenses.

Then two months later, directors flew to Israel with BoQ saying the idea was to deepen their understanding of digital technologies. Technology has been a weak point with BoQ’s mobile phone app currently awarded 1.4 stars on reviews on Apple’s App Store.

“BoQ is one of many Australian listed companies to visit Israel and explore its thriving fintech and innovation hub,” a bank spokeswoman said.

Industry sources suggested the tour involved business class flights and security, although BoQ would not confirm or deny details. The bank also declined to comment on specific cost-cutting moves enacted by the bank, nor identify which board members went.

Its spokeswoman said: “BOQ prudently and carefully manages all business-related costs.”

The Finance Sector Union said they were aware of BoQ staff being told to tighten their belts, and employees struggling to do their jobs in the circumstances.

“Here we have yet another example of where boards … are so out of touch with their staff and customers and continue to make bad decisions,” FSU state secretary Wendy Streets said.