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Bank of Queensland
(Sydney:BOQ)
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Rating:56Neutral
Price Target:
AU$7.00
▲(9.37% Upside)
Action:Reiterated
Date:10/16/26
Overall score reflects moderate fundamentals with a recent rebound but uneven quality: improving profitability and sharply better 2025–2026 cash flow are tempered by two years of revenue decline, prior margin compression, and historically low ROE. The earnings call adds support via constructive guidance and execution progress, while technicals are neutral (trend above key averages but weak momentum) and valuation is mixed due to a high P/E despite an attractive dividend yield.
Positive Factors
Commercial lending growth
Strong commercial lending growth expands BOQ’s earning-asset base and diversifies its loan mix beyond housing. The addition of business bankers and specialist hubs supports distribution capacity, while management’s FY2027 target indicates this growth initiative is intended to continue.
Negative Factors
Recent revenue and margin weakness
Two consecutive years of revenue decline and prior margin compression indicate that the earnings recovery is not yet supported by consistent top-line expansion. This can limit operating leverage and makes sustainable profit growth more dependent on costs, mix, and balance-sheet execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial lending growth
Strong commercial lending growth expands BOQ’s earning-asset base and diversifies its loan mix beyond housing. The addition of business bankers and specialist hubs supports distribution capacity, while management’s FY2027 target indicates this growth initiative is intended to continue.
Read all positive factors
Bank of Queensland (BOQ) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.64B
Dividend Yield7.78%
Average Volume (3M)2.45M
Price to Earnings (P/E)18.6
Beta (1Y)0.98
Revenue Growth-6.03%
EPS Growth88.39%
CountryAU
Employees3,249
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.38
Shares Outstanding659,747,300
10 Day Avg. Volume3,424,551
30 Day Avg. Volume2,445,350
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.75
Price to Sales (P/S)0.90
P/FCF Ratio3.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$6.27Price Target Upside-2.05% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)0.54
Revenue Forecast (FY)AU$1.69B
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 through net interest income: it pays interest on customer deposits and wholesale funding, lends those funds to customers (such as home loans and business loans) at higher interest rates, and earns the spread (net interest...
Bank of Queensland Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Apr 21, 2027
Earnings Call Sentiment Positive
The call was broadly constructive. BOQ highlighted substantial progress in digital migration, technology simplification, business lending, capital management, liquidity, risk remediation, and productivity, alongside improving second-half earnings trends and a planned return to growth. However, full-year cash earnings declined, returns remain below the cost of capital, impairment expense increased, and management continues to face elevated competition, economic uncertainty, funding-cost pressure, and household and business stress. Overall, the positive operational and strategic progress significantly outweighed the disclosed challenges.Positive Updates
Capital Returns and Strong Capital Position
BOQ paid a fully franked special dividend of $0.15 per share, declared a fully franked final dividend of $0.20 per share, and returned total dividends of $0.55 per share for FY2026. The on-market share buyback commenced in August. Year-end CET1 was 11.64%, while the pro forma CET1 ratio after completion of the buyback was 11.14%, above the top end of management's target range.
Negative Updates
Full-Year Cash Earnings Decline
FY2026 cash earnings excluding notable items declined 7% to $358 million. When including the $33 million post-tax technology-asset impairment notable item, cash earnings declined 15% against both the prior year and the first half.
Read all updates
Q4-2026 Updates
Positive
Negative
Capital Returns and Strong Capital Position
BOQ paid a fully franked special dividend of $0.15 per share, declared a fully franked final dividend of $0.20 per share, and returned total dividends of $0.55 per share for FY2026. The on-market share buyback commenced in August. Year-end CET1 was 11.64%, while the pro forma CET1 ratio after completion of the buyback was 11.14%, above the top end of management's target range.
Read all positive updates
Company Guidance
For FY '27, BOQ is targeting a similar level of commercial lending growth, returning to housing growth, strong growth in noninterest income, flat annual cost growth, relatively stable loan impairment expense, completion of the buyback, a CET1 target ratio of 10.25% to 10.75%, and a dividend payout target range of 60% to 75% of cash earnings; in the first half, subject to market conditions, it expects a modest uplift in margin, with a modest first half uplift also described as the expectation, and expects competition for lending and deposits to remain elevated. The full year benefit run rate of the capital partnership is expected in FY '27, with the $14 million contribution from origination and servicing fees as the base case and upside given momentum, while commissions income is expected to marginally improve and other items to remain broadly stable. Costs are expected to reflect elevated inflation, growth in technology costs, ongoing investment in risk, including financial crime, and higher amortization, offset by simplification benefits. Loan impairment expense is expected to be broadly consistent with FY '26 on a dollar basis, with the long-run averages estimated at 2 and 4 basis points for housing, around 20 basis points for commercial lending and about 45 basis points for asset finance. The bank expects the BOQ heritage migration to take around 2 to 3 years with a similar cost step-down to the ME migration, and mortgage acquisition returns to be accretive to current ROE with a return over time to the cost of capital.Bank of Queensland Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
49
Neutral
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.78B | 4.72B | 5.08B | 4.20B | 1.63B |
| Gross Profit | 1.50B | 1.18B | 1.60B | 1.75B | 1.65B |
| EBITDA | 436.00M | 332.00M | 557.00M | 726.00M | 656.00M |
| Net Income | 250.00M | 133.00M | 285.00M | 124.00M | 409.00M |
Balance Sheet | |||||
| Total Assets | 93.71B | 100.53B | 103.04B | 105.35B | 99.91B |
| Cash, Cash Equivalents and Short-Term Investments | 1.92B | 2.73B | 3.15B | 2.58B | 2.45B |
| Total Debt | 15.27B | 17.66B | 18.19B | 21.03B | 21.01B |
| Total Liabilities | 87.97B | 94.62B | 97.02B | 99.22B | 93.25B |
| Stockholders Equity | 5.74B | 5.91B | 6.02B | 6.13B | 6.67B |
Cash Flow | |||||
| Free Cash Flow | 1.27B | 172.00M | -1.05B | -2.20B | -6.40B |
| Operating Cash Flow | 1.29B | 185.00M | -865.00M | -2.20B | -6.36B |
| Investing Cash Flow | 4.91B | 2.55B | 14.00M | -142.00M | -192.00M |
| Financing Cash Flow | -6.98B | -2.63B | -1.46B | 5.13B | 6.44B |
Bank of Queensland Technical Analysis
Positive
6.40
Price Trends
6.45
Positive
6.27
Positive
6.26
Positive
Market Momentum
0.17
Negative
74.54
Negative
62.01
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 6.60, below the 50-day MA of 6.45, and above the 200-day MA of 6.26, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 74.54 is Negative, neither overbought nor oversold. The STOCH value of 62.01 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$17.38B | 7.59 | 16.81% | 2.43% | 142.61% | 445.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | AU$129.05B | 20.76 | 9.88% | 4.10% | -8.10% | -10.70% | |
56 Neutral | AU$4.64B | 18.61 | 4.30% | 7.78% | -6.03% | 88.39% | |
55 Neutral | AU$6.26B | 16.33 | 5.61% | 5.84% | -5.79% | ― | |
55 Neutral | AU$125.77B | 17.96 | 9.77% | 4.18% | -3.87% | 1.20% | |
54 Neutral | AU$278.72B | 25.65 | 13.94% | 3.03% | 0.78% | 7.41% |
* Financial Sector Average
AU:BOQ
Bank of Queensland
7.07
0.69
10.82%
AU:BEN
Bendigo & Adelaide Bank
10.78
-1.35
-11.11%
AU:NAB
National Australia Bank Limited
41.51
-0.72
-1.70%
AU:WBC
Westpac Banking
36.82
-1.47
-3.85%
AU:SOL
Washington H. Soul Pattinson and Co.
45.77
8.63
23.25%
AU:CBA
Commonwealth Bank of Australia
166.72
-3.63
-2.13%
Bank of Queensland Corporate Events
Bank of Queensland Issues New Shares Following Conversion of Unquoted Securities
Oct 13, 2026
Bank of Queensland Limited has notified the market of the issue of 163,075 ordinary fully paid shares following the exercise or conversion of previously unquoted equity securities. The new shares, issued on 30 September 2026, modestly increase the...
Bank of Queensland Sets Quarterly Distribution on Hybrid Capital Notes
Sep 16, 2026
Bank of Queensland has announced a new quarterly distribution on its ASX-listed capital notes, BOQPG, which are perpetual, non-cumulative, floating-rate instruments paying 3.40% above the three-month bank bill swap rate. The distribution of AUD 1....
Bank of Queensland Cancels Shares Following On‑Market Buy‑Back
Sep 7, 2026
Bank of Queensland Limited has cancelled 1,722,162 ordinary fully paid shares following completion of an on‑market buy‑back, effective 27 August 2026. The reduction in issued capital may enhance earnings per share and reflects ongoing ...
Bank of Queensland Clarifies Director Karen Penrose’s Indirect Share Holdings
Sep 4, 2026
Bank of Queensland has reported a change in the way director Karen Penrose’s indirect holdings in ordinary shares are recorded, without any alteration to her overall beneficial ownership. The disclosure, made under ASX listing rule requireme...
Bank of Queensland Updates Market on Progress of On-Market Share Buy-Back
Aug 31, 2026
Bank of Queensland Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The daily update, dated 1 September 2026, confirms the program continues to reduce the number ...
Bank of Queensland Continues On‑Market Share Buy-Back Program
Aug 27, 2026
Bank of Queensland Limited has issued an updated notification to the ASX confirming ongoing on‑market buy-backs of its ordinary fully paid shares, with a total of 648,325 securities repurchased before the previous day and a further 391,889 b...
Bank of Queensland Reports Daily On-Market Share Buy-Back Activity
Aug 25, 2026
Bank of Queensland Limited has provided an updated notification to the ASX regarding its on-market share buy-back program for its ordinary fully paid shares. The update confirms that the bank bought back 337,105 shares on the previous trading day,...
Bank of Queensland Sets November Distribution on BOQPF Capital Notes
Aug 18, 2026
Bank of Queensland Limited is an Australian regional bank operating in the financial services industry, offering retail and business banking products such as deposits, loans and specialized funding instruments. The bank is listed on the ASX under ...
Bank of Queensland Announces AUD 0.15 Dividend for Ordinary Shareholders
Aug 9, 2026
Bank of Queensland Limited has declared a dividend of AUD 0.15 per ordinary fully paid share, payable on 24 August 2026 to shareholders on the register as of 14 August 2026, with the stock trading ex-dividend from 13 August 2026. The distribution ...
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...
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.