Bank of Queensland (BOQ) H2 2025 earnings summary

Executive summary

• Cash earnings after tax rose 12% year-over-year to $383 million, driven by revenue growth, margin improvement, and a flat cost base.

• Statutory net profit after tax was $133 million, down 53% year-over-year due to goodwill impairment and restructuring costs.

• Retail bank transformation advanced, with 44% of retail customers now on the digital platform and 114 franchise branches converted.

• Supported approximately 1.5 million customers, with a 3% increase in customer base.

• Strategic transformation initiatives delivered tangible benefits, including digital mortgage launch, branch conversion, and productivity improvements.

Financial highlights

• Total income rose 4% to $1,657 million, with both net interest and non-interest income up 4%.

• Cash earnings up 12% to $383 million; statutory profit at $133 million after goodwill impairment.

• Net interest margin improved by 8 basis points to 1.64% year-over-year, with a second half NIM of 1.70%.

• Operating expenses were flat at $1,072 million; underlying costs down 4%.

• Cost-to-income ratio reduced by 210 basis points to 64.7%.

Outlook and guidance

• Australian economy expected to strengthen in FY26, but environment remains unpredictable due to geopolitical risks.

• Margin outlook faces risks from cash rate uncertainty and elevated competition in lending.

• Cost growth in FY26 expected to be sub-inflation, with material cost benefits from simplification and legacy system decommissioning flowing into FY27.

• Loan impairment expense expected to remain below long-term averages but may drift higher over time.

• CET1 capital management and dividend payout ratio targets unchanged.