Key Highlights

  • BOQ closed at $6.87, up $0.379 or 5.86%, on 15 October 2026.
  • Cash Earnings after tax were $358 million, down 7%, and statutory net profit was $250 million, up 88%.
  • A fully franked final Dividend of 20 cents was declared, a payout of 72.9% of second-half cash earnings.
  • The CET1 ratio was 11.64%, and a buyback of up to $196 million is under way.

Bank of Queensland Limited (ASX:BOQ) reported its results for the year ended 31 August 2026, and its shares closed at $6.87, up $0.379, or 5.86%, on 15 October 2026.

The rise of 37.9 cents implies a previous close of about $6.49. The closing price does not state what drove the increase, and this article does not claim that it followed the result.

Company Overview

BOQ is an Australian regional bank headquartered in Queensland, with retail banking brands including ME and a Business Bank serving small and medium businesses in sectors such as health and agriculture. It says it is working to become a simple, specialist bank.

Earnings and Margin

Statutory net profit after tax was $250 million, up 88%, and cash earnings after tax excluding notable items were $358 million, down 7%, with cash Earnings Per Share of 54.4 cents, also down 7%. Total income rose 1%, as a 6 basis point lift in net interest Margin to 1.70% and a 12% rise in non-interest income were partly offset by lower average interest-earning assets. Costs rose 2% excluding notable items, below inflation. Loan Impairment expense rose $33 million because a commercial lending write-back in the prior year did not repeat. Cash return on average Equity fell 30 basis points to 6.1%.

Lending and Strategy

Home lending contracted $4.6 billion, or 8%, on FY25, reflecting lower settlement volumes and higher run-off, and the group plans a return to home lending growth in FY27. Commercial lending grew $2.1 billion, or 16%. All ME customers have been migrated off legacy platforms, 88% of August home lending applications came through digital channels, and the digital bank attracted more than $2 billion of new-to-bank deposits. 82% of the productivity program launched in 2023 has been delivered, and both Remedial Action Plans are 74% complete.

Capital Return

BOQ sold $3.6 billion of equipment finance Assets to Challenger under a Capital Partnership with a forward flow arrangement, paid a fully franked Special Dividend of 15 cents per share on 24 August 2026, and began an on-market buyback of up to $196 million, of which about $11 million of shares had been bought by 31 August. The final dividend is 20 cents, fully franked, with a reinvestment plan operating at no discount, and total returns to shareholders during the year were 55 cents per share. The closing CET1 ratio was 11.64%, or 11.14% pro forma for the remaining buyback.

Reading the Numbers

The 88% rise in statutory profit compares with a 7% fall in cash earnings because the prior year's statutory profit was reduced by large notable items, which the cash measure excludes. Payout of 72.9% in the second half sits within the group's unchanged target range of 60% to 75% of cash earnings. The company states a final Dividend Yield of 6.1% on the year-end share price and a full-year total of 8.4%, which use its own reference price and differ from any later price. Returns of 55 cents per share during the year include the 15 cent special dividend, and the buyback of up to $196 million is a separate form of capital return.

Risks

Cash earnings and Return on Equity fell during the year, and home lending shrank. Economic conditions are uncertain, and the group says it is monitoring household and business pressures. Delivery of productivity benefits depends on completing the ME decommissioning and technology transition, and the capital return depends on regulatory capital settings.

What to Watch

Items include home lending growth in FY27, net interest margin, buyback progress, completion of the remedial action plans, commercial lending growth and the equipment finance forward flow volumes.