Company Reports

After completing the sale of its equipment finance portfolio, Bank of Queensland is delivering on its commitment to return capital to shareholders with a fully franked special dividend of AUD 15 cents to be paid on Aug. 24, 2026, and an on-market buyback of AUD 196 million.

Bank of Queensland is one of Australia's top-10 largest banks, but is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost/income and returns on equity. Owner-manager branches were converted to corporate branches in fiscal 2025.

Bank of Queensland's home loan book continues to shrink, with its market share slipping to 2.1% in May, down from 2.4% a year ago. It is doing better in business lending, picking up modest share gains.

Bank of Queensland is one of Australia's top-10 largest banks, but is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost/income and returns on equity. Owner-manager branches were converted to corporate branches in fiscal 2025.

Bank of Queensland is one of Australia's top-10 largest banks, but is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost/income and returns on equity. Owner-manager branches were converted to corporate branches in fiscal 2025.

Bank of Queensland's first-half fiscal 2026 cash profit fell 4% to AUD 176 million—costs associated with converting franchise branches and higher loan impairments offset top-line growth. Earnings momentum on the second half of fiscal 2025 soured further, down 11%. Shares dived 9% on the result.

Bank of Queensland is partnering with Challenger to shift AUD 3.7 billion of equipment finance loans onto the investment manager's balance sheet. The move is expected to free up about AUD 300 million in capital for Bank of Queensland, which it intends to use on share buybacks and a special dividend.

Bank of Queensland is one of Australia's top-10 largest banks, but is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost/income and returns on equity. Owner-manager branches were converted to corporate branches in fiscal 2025.

Current Chief Transformation Officer Rod Finch will become Bank of Queensland CEO as of March 2026, taking over from Patrick Allaway.

Bank of Queensland is one of Australia's top-10 largest banks, but is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost/income and returns on equity. Owner-manager branches were converted to corporate branches in fiscal 2025.

Bank of Queensland's fiscal 2025 cash profit increased 12% to AUD 383 million, boosted by the conversion of franchise branches to corporate ownership. Underlying metrics moved the right way, with net interest margins up slightly and operating expenses down 4%.

As part of its quest to deliver stronger and more consistent returns for shareholders Bank of Queensland is exploring ways it can shift its AUD 3.8 billion equipment finance portfolio off its balance sheet. The bank also provided guidance for fiscal 2025 profit to be up 9%-12% from last year.

Bank share prices performed well in the three months to June 30, 2025. Credit growth has continued to trend higher, while credit stress has been low. Australian banks reported flat to modestly softer net interest margins in the March quarter.

Bank of Queensland is one of Australia's top-10 largest banks, but is considerably smaller than the four major Australian banks. Preceding the global financial crisis, the bank grew aggressively via acquisitions and the rollout of its distinctive owner-manager branch franchise model. However, expanding the branch network and diversifying from traditional residential lending came at a cost, with additional equity required to fund growth, significantly increased bad debts, and multiple banking systems, which resulted in deteriorating cost/income and returns on equity.

Bank of Queensland's first-half fiscal 2025 cash profit of AUD 183 million increased by 7% in the second half of last year, largely thanks to a 5% reduction in operating expenses. Investment spending is falling, and efficiency benefits are being realized. Net interest margins were steady.

Australian nonmajor banks were not immune to the market selloff following President Donald Trump's tariffs, with a potential hit to gross domestic product growth clouding the earnings outlook. In fiscal 2025, credit growth is ticking up on population and wages growth, and credit stress has been low.

Franking for Australian banks we cover was showing as not available on our research reports between Jan. 23 and March 13, 2025, due to a recent change in our process for extracting data from our valuation models. This has been corrected.

Credit growth is ticking up on population and wages growth, and households and businesses appear more optimistic about the economic outlook as rate hikes appear less likely.

Australian bank share prices have performed strongly in the last 12 months, with the eight banks we cover up over 50% on average. But do current share prices reflect the fundamentals?

The one thing that increased for Bank of Queensland in fiscal 2024 were operating expenses, with net interest margins, or NIM, down 13 basis points to 1.56% and profit down 24% to AUD 343 million. Still shares reacted positively, up 6%.