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Highlights

  • BOQ share price up 4.9% despite ASX 200 dipping 0.1%
  • Statutory NPAT rose 13% to AU$171 million in H1 FY25
  • Interim dividend increased 5.9% to 18 cents per share

The Bank of Queensland Ltd (ASX: BOQ) share price is climbing higher on Wednesday following the release of its half-year financial results for the period ending 28 February 2025.

Shares in the ASX 200-listed bank were trading at AU$6.82 in morning trade, up 4.9% from Tuesday’s close of AU$6.50. This move comes despite the broader S&P/ASX 200 Index being down 0.1% at the same time.

Investors appear to be responding to improved earnings and cost control over the half year. The bank reported a 13% increase in statutory net profit after tax (NPAT), reaching AU$171 million. Cash earnings after tax came in at $183 million, a 6% year-on-year lift.

The net interest margin (NIM) remained steady at 1.57%, while common equity tier 1 (CET1) capital rose 0.21% to 10.87%. BOQ also declared an interim fully franked dividend of 18 cents per share, up from 17 cents in the same period last year. This represents a 65.1% payout ratio of cash earnings, within the bank’s target range.

Total income for the half was reported at AU$793 million, unchanged from the prior corresponding period. Net interest income also remained stable at $725 million, despite a 1% drop in average interest-earning assets. However, non-interest income declined 3% to $68 million, impacted by reduced banking fees and trading income.

On the expense side, operating costs fell by 1% to AU$520 million. The bank attributed this to gains from its simplification strategy, which helped offset inflation and rising investment in digital and risk systems.

Loan impairment expenses also fell significantly, down 80% to AU$3 million compared to the first half of FY24.

CEO Patrick Allaway said the results reflect continued progress on BOQ’s strategy to focus on higher-return segments and build a scalable digital retail bank.