Highlights:

  • BOQ reported cash earnings after tax of AUD 383 million for FY25, up 12% from FY24.
  • Commercial lending grew 14% to AUD 1,598 million, while home lending declined 7% to AUD 4,293 million.
  • Final fully franked dividend of 20 cents per share was declared, representing a payout ratio of 66.2% of 2H25 cash earnings.

Bank of Queensland Limited (ASX:BOQ) reported cash earnings after tax of AUD 383 million for the full year ended 31 August 2025 (FY25), up 12% from FY24. Statutory net profit after tax was AUD 133 million, reflecting a 53% decline due to previously disclosed goodwill impairment, branch strategy costs, and restructuring expenses. Total income for FY25 reached AUD 1,657 million, a 4% year-on-year increase.

Higher cash earnings were driven by revenue growth of 4%, stable operating expenses, and moderate loan impairment charges. Net interest income rose to AUD 1,515 million, with an 8 basis point lift in net interest margin (NIM) to 1.64%. Non-interest income increased to AUD 142 million, supported by fees from business lending and gains related to branch conversions.

Commercial Lending Drives Balance Sheet Transition

BOQ continued reshaping its balance sheet by reducing low-return home lending and expanding higher-margin commercial lending. Home lending declined 7% to AUD 4,293 million, while commercial lending rose 14% to AUD 1,598 million. Retail gross loans and advances dropped by AUD 3,142 million, reflecting a focus on redeploying capital into business lending. Growth was led by healthcare, agricultural, and diversified sectors, along with asset finance lending, particularly novated leases.
Customer deposits fell 1% to AUD 632 million as the bank intentionally reduced term deposits, while the deposit-to-loan ratio improved 200 basis points to 86%. Customer numbers grew approximately 3% during FY25, with BOQ continuing to serve around 1.5 million Australian households and businesses.

Progress in Digital Migration and Branch Conversion

BOQ made progress on its digital transformation, migrating 44% of retail customers to its digital banking platform. The newly launched digital mortgage system enables conditional approvals in under 90 seconds for straightforward applications. All owner-managed branches were converted to proprietary channels, supporting a 12 basis point margin uplift in 2H25. Simplification initiatives reduced underlying expenses by 4% compared with FY24, with annualised efficiency gains of AUD 250 million anticipated by FY26.

Dividend Declaration

The Board announced a fully franked final dividend of 20 cents per share, equivalent to 66.2% of 2H25 cash earnings and yielding 5.5%. Cash return on average equity rose 70 basis points to 6.4%, while cash return on tangible equity gained 80 basis points to 7.9%. The Common Equity Tier 1 (CET1) ratio increased by 28 basis points to 10.94%, exceeding management’s target range of 10.25–10.75%.
BOQ remains committed to growth in commercial lending, maintaining robust asset quality, and enhancing digital capabilities while closely monitoring economic conditions and competitive pressures in the lending market.

BOQ shares were trading 1.26% higher at AUD 7.21 per share at the time of writing on 15 October 2025.