Bank of Queensland (BOQ) H2 2026 earnings summary

Executive summary

• FY26 adjusted cash earnings after tax were $358m, down 7% YoY; statutory NPAT rose 88% to $250m, while 2H cash earnings increased 3% HoH to $182m.

• Priorities included simplification, risk remediation, stronger capital and disciplined growth; ME migration and the $3.6bn equipment-finance sale advanced transformation.

• FY26 shareholder returns totalled 55c per share, including a 15c special and 20c final dividend; an on-market buy-back commenced in August.

Financial highlights

• Total income was $1,679m, up 1% YoY; net interest income was $1,520m, while non-interest income rose 12% to $159m.

• Net interest margin was 1.70%, up 6bp YoY; 2H26 NIM was 1.73%, with funding benefits partly offset by lower average interest-earning assets.

• Adjusted operating expenses rose 2% to $1,098m, below inflation; underlying profit excluding notable items was $581m, down 1%.

• Loan impairment expense increased to $54m from $21m; cash earnings after tax including notable items were $325m, down 15% YoY.

• Home lending was $52,868m, down 8% YoY; customer deposits were $62,904m, down 6%. Business lending was $18,950m, up 14% normalised for the equipment-finance sale.

Outlook and guidance

• FY27 targets commercial lending growth comparable to FY26 and a sustainable, returns-led return to home-lending growth.

• A modest 1H27 NIM uplift is expected, subject to market conditions; non-interest income is expected to grow strongly on the capital partnership run-rate.

• Guidance targets flat annual cost growth and relatively stable loan impairment expense; ME decommissioning and the Capgemini partnership are expected to support costs.

• Buy-back completion is expected in FY27; CET1 target is 10.25%–10.75% and cash earnings dividend payout target is 60%–75%.