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Bank of Queensland
(Sydney:BOQ)
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Rating:51Neutral
Price Target:
AU$6.50
▲(1.56% Upside)
Action:Reiterated
Date:08/04/26
The score is held back mainly by weaker recent financial performance (revenue and earnings decline, low ROE and historically inconsistent cash flow). Technicals are moderately supportive with price above major moving averages and positive MACD, but near-overbought signals temper momentum. Valuation is a headwind due to a high P/E despite a strong dividend yield. The latest earnings call adds a modest positive tilt via capital strength, cost discipline guidance, and planned capital returns, partly offset by margin and credit-related pressures.
Positive Factors
Strong capital position & planned returns
A CET1 ratio of 11.18% provides durable loss-absorption and regulatory buffer, enabling management to pursue shareholder returns and balance sheet reshaping. The planned capital return from the equipment finance sale signals excess capital that can be redeployed or returned without weakening core solvency.
Negative Factors
Net interest margin pressure
Sustained NIM compression limits core earnings power given BOQ's interest-earnings reliant model. Timing effects, retention discounts and lower asset days suggest margins could remain constrained absent structural funding improvements or sustained deposit re-pricing, pressuring medium-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capital position & planned returns
A CET1 ratio of 11.18% provides durable loss-absorption and regulatory buffer, enabling management to pursue shareholder returns and balance sheet reshaping. The planned capital return from the equipment finance sale signals excess capital that can be redeployed or returned without weakening core solvency.
Read all positive factors
Bank of Queensland (BOQ) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.35B
Dividend Yield5.96%
Average Volume (3M)1.83M
Price to Earnings (P/E)43.1
Beta (1Y)1.01
Revenue Growth-4.72%
EPS Growth-67.75%
CountryAU
Employees3,394
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.15
Shares Outstanding659,747,300
10 Day Avg. Volume1,507,214
30 Day Avg. Volume1,828,435
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)0.78
Price to Sales (P/S)0.98
P/FCF Ratio26.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$6.22Price Target Upside-2.89% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.53
Revenue Forecast (FY)AU$1.65B
Bank of Queensland Business Overview & Revenue Model
Company Description
Operating across Australia, Bank of Queensland Limited (BOQ) and its affiliated entities offer a diverse array of financial solutions. The company structures its operations into three primary divisions: Retail Banking, BOQ Business, and an 'Other'...
How the Company Makes Money
BOQ primarily makes money by earning interest income on loans and other interest-earning assets and paying interest on deposits and wholesale funding, with the difference (net interest income/margin) representing a major portion of earnings. Key i...
Bank of Queensland Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call presents a broadly constructive strategic and operational progress narrative: strong capital and liquidity, clear digital migration milestones (300k+ customers, >70% active retail on platform, 75% of mortgage originations through the platform), productivity gains and a transformative Challenger capital partnership that should free up capital and create capital‑light revenue. Near‑term headwinds include an earnings dip (cash earnings down 4%), higher loan impairment expense driven by an asset finance single‑name provision, NIM pressure and timing delays in technology outsourcing impacting productivity timing. Management emphasizes disciplined execution, sub‑inflation cost guidance, provisioning strength and a pathway back to mortgage growth in FY'27. On balance, the positive strategic achievements, capital strength and clear remediation/efficiency trajectories outweigh the near‑term operating and market challenges.Positive Updates
Solid Capital and Dividend
CET1 of 11.18%, up 24 basis points for the half; Board declared a fully franked interim dividend of $0.20 per share (75% payout ratio), and management intends to return capital released from the equipment finance sale to shareholders via a special dividend and on‑market buyback subject to approvals.
Negative Updates
Cash Earnings & Statutory Profit Decline
Cash earnings of A$176m, down 4% on the prior comparable period and 12% on 2H25; statutory net profit after tax A$136m (impacted by amortization, hedging/fair value changes and a A$31m post‑tax held‑for‑sale impact).
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Capital and Dividend
CET1 of 11.18%, up 24 basis points for the half; Board declared a fully franked interim dividend of $0.20 per share (75% payout ratio), and management intends to return capital released from the equipment finance sale to shareholders via a special dividend and on‑market buyback subject to approvals.
Read all positive updates
Company Guidance
Management reiterated FY26 guidance to deliver sub‑inflation cost growth for the full year and a planned reduction in the cost base in H2 (cost guidance unchanged), while continuing to progress the $250m productivity/simplification program (management expects run‑rate benefits by exit FY26 and says the full $30m of annualised benefits remains on track for FY27); capital and capital return plans include CET1 of 11.18% at half, a fully franked interim dividend of $0.20/share (75% payout for the half), intent to return capital from the ~A$3.7bn equipment finance sale via a fully franked special dividend and an on‑market buyback (subject to approvals) with the sale expected to complete by early May; margin and funding guidance includes H1 NIM of 1.67% (Q2 stronger than Q1) and expected H2 tailwinds from February/March cash‑rate moves, favourable term‑deposit spreads, deposit optimisation and the replicating portfolio (noting a one‑off +2bp benefit in H1 will not recur); asset quality and loss guidance: H1 loan impairment expense A$20m (5bps to GLA), provisions A$298m (39bps to GLA, A$68m above base scenario) with a 100% downside scenario implying an incremental A$24m provisioning need and management expecting losses to remain below long‑run averages in the near term; lending and liquidity guidance: >A$23bn of home loans on the digital platform with ~75% of home lending originations digital (March), home lending expected to return to growth in FY27, business lending target to grow at system in H2, LCR ~141%, deposit‑to‑loan ~85%, held deposits ~72% of funding and targeted liquidity/funding optimisation following the sale; investment and amortisation: H1 investment A$77m, ~85% of software intangibles in use, amortisation expected to end FY26 close to A$100m and to rise a further ~20–25% into the FY27 peak before stabilising.Bank of Queensland Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
52
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.99B | 4.72B | 5.08B | 4.20B | 1.63B | 1.27B |
| Gross Profit | 1.66B | 1.18B | 1.60B | 1.75B | 1.65B | 1.27B |
| EBITDA | 236.00M | 332.00M | 557.00M | 415.00M | 731.00M | 628.00M |
| Net Income | 98.00M | 133.00M | 285.00M | 124.00M | 409.00M | 368.00M |
Balance Sheet | ||||||
| Total Assets | 98.30B | 100.53B | 103.04B | 105.35B | 99.91B | 91.44B |
| Cash, Cash Equivalents and Short-Term Investments | 3.46B | 2.73B | 3.15B | 2.58B | 2.45B | 2.35B |
| Total Debt | 15.24B | 17.66B | 18.19B | 21.03B | 21.01B | 18.31B |
| Total Liabilities | 92.41B | 94.62B | 97.02B | 99.22B | 93.25B | 85.24B |
| Stockholders Equity | 5.90B | 5.91B | 6.02B | 6.13B | 6.67B | 6.20B |
Cash Flow | ||||||
| Free Cash Flow | 647.00M | 172.00M | -1.05B | -2.20B | -6.40B | -3.30B |
| Operating Cash Flow | 655.00M | 185.00M | -865.00M | -2.20B | -6.36B | -3.29B |
| Investing Cash Flow | 1.28B | 2.55B | 14.00M | -142.00M | -192.00M | -873.00M |
| Financing Cash Flow | -2.43B | -2.63B | -1.46B | 5.13B | 6.44B | 5.37B |
Bank of Queensland Technical Analysis
Positive
6.40
Price Trends
6.36
Positive
6.26
Positive
6.34
Positive
Market Momentum
0.07
Negative
56.52
Neutral
78.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BOQ, the sentiment is Positive. The current price of 6.4 is below the 20-day moving average (MA) of 6.46, above the 50-day MA of 6.36, and above the 200-day MA of 6.34, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BOQ.
Bank of Queensland Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$16.87B | 6.92 | 20.57% | 2.43% | 49.44% | 315.41% | |
68 Neutral | AU$122.61B | 19.33 | 9.88% | 4.37% | -8.10% | -10.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | AU$270.06B | 24.35 | 13.94% | 3.18% | 0.78% | 7.41% | |
55 Neutral | AU$119.63B | 16.91 | 9.77% | 4.45% | -3.87% | 1.20% | |
51 Neutral | AU$4.35B | 43.10 | 1.66% | 5.96% | -4.72% | -67.75% | |
43 Neutral | AU$6.07B | 15.67 | 5.61% | 6.09% | -5.79% | ― |
* Financial Sector Average
AU:BOQ
Bank of Queensland
6.56
0.07
1.06%
AU:BEN
Bendigo & Adelaide Bank
10.35
-1.59
-13.31%
AU:NAB
National Australia Bank Limited
38.87
-2.78
-6.68%
AU:WBC
Westpac Banking
34.58
-2.24
-6.09%
AU:SOL
Washington H. Soul Pattinson and Co.
44.11
0.05
0.10%
AU:CBA
Commonwealth Bank of Australia
158.69
-4.86
-2.97%
Bank of Queensland Corporate Events
Bank of Queensland Releases Quarterly APRA Basel III Pillar 3 Disclosures
Jul 23, 2026
Bank of Queensland has released its quarterly APRA Basel III Pillar 3 report for the period ending 31 May 2026, providing detailed regulatory disclosures on its capital and risk position. The publication underscores the bank’s ongoing compli...
Bank of Queensland Reports Lapse of Executive Equity Awards
Jul 13, 2026
Bank of Queensland Limited has notified the market of the lapse of certain conditional equity award rights, affecting instruments issued under its deferred award and CEO and chair award schemes. The announcement relates to changes in the bank̵...
Bank of Queensland Issues New Shares Following Conversion of Unquoted Securities
Jul 13, 2026
Bank of Queensland has notified the market of the issue of 263,484 ordinary fully paid shares resulting from the conversion or exercise of previously unquoted securities. The new shares, issued on 30 June 2026, modestly increase the bank’s e...
Bank of Queensland issues A$350m Tier 2 subordinated notes
Jul 8, 2026
Bank of Queensland Limited has issued A$350 million of floating rate subordinated notes due 9 July 2036 under its A$8 billion debt issuance programme, with terms governed by an information memorandum and a pricing supplement. The notes are structu...
Bank of Queensland Updates Capital Structure as Options and Awards Expire
Jul 2, 2026
Bank of Queensland Limited has reported the cessation of certain ASX-listed securities as part of an update to its issued capital. The announcement details changes to options and deferred award rights that are linked to the bank’s ordinary s...
Dimensional Entities Ceases to Be Substantial Holder in Bank of Queensland
Jun 23, 2026
Dimensional Entities has notified Bank of Queensland that it has ceased to be a substantial shareholder as of 19 June 2026, in line with disclosure requirements under section 671B of the Corporations Act 2001. The change, formalised in a substanti...
Bank of Queensland Sets September Distribution on BOQ Capital Notes
Jun 16, 2026
Bank of Queensland has announced a quarterly distribution on its ASX-listed Capital Notes BOQPG, a perpetual, non-cumulative security paying a margin of 3.40% over the bank bill swap rate. The distribution of AUD 1.388 per note relates to the peri...
Bank of Queensland Updates DRP Pricing and FX Details for Interim Dividend
May 21, 2026
Bank of Queensland has updated details of its interim dividend for holders of ordinary fully paid shares, relating to the six‑month period ended 28 February 2026. The bank confirmed the record date of 5 May 2026 and ex‑dividend date of...
Bank of Queensland Issues New Shares From Unquoted Securities Conversion
May 11, 2026
Bank of Queensland has notified the market of the issue of 20,527 new ordinary fully paid shares following the conversion or exercise of unquoted securities. The small-scale issuance, effective 8 May 2026, marginally increases the bank’s sha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.