Highlights

• Cash earnings after tax reached AU$176 million in 1H26 despite a challenging operating environment.
• Net interest income increased 4% to AU$755 million, supported by improved margins.
• CET1 ratio strengthened to 11.18%, remaining above the Group’s target range.

Bank of Queensland Reports Steady 1H26 Financial Performance

Bank of Queensland Limited (ASX: BOQ) announced its half year results for the period ended 28 February 2026 on 21 April 2026, reporting stable underlying performance, improved capital strength and continued progress on its digital transformation initiatives. The bank delivered growth in revenue while managing competitive pressures across lending and deposits. During 1H26, Bank of Queensland recorded revenue from ordinary activities of AU$835 million, representing a 4% increase compared with the prior corresponding period. Statutory profit after tax attributable to members stood at AU$136 million, down 20% year-over-year due to several non-recurring impacts, including the whole-of-loan equipment finance sale.

Earnings Supported by Higher Net Interest Income

Cash earnings after tax totalled AU$176 million, reflecting a 4% decline compared with 1H25. The result was supported by stronger underlying profit generation, although higher loan impairment expenses affected earnings compared with the previous period.

Net interest income grew to AU$755 million during 1H26, reflecting a 4% year-on-year increase supported by an expansion in net interest margin of 10 basis points. The improvement reflected benefits from branch network conversion, growth in business lending and optimisation of funding sources, partially offset by competitive pressure in lending and deposit markets.

Business Lending Growth Supports Portfolio Strategy

Bank of Queensland continued shifting its lending mix towards commercial banking, with commercial lending increasing 16% year-over-year to AU$14.1 billion. Growth was supported by lending across healthcare, agribusiness and diversified commercial sectors.

The bank’s focus on digital transformation also progressed during the period, with migration activities advancing and more than 70% of ME customers transferred to the Group’s digital platform.

Strong Capital Position and Shareholder Returns

Bank of Queensland maintained a solid balance sheet, with the Common Equity Tier 1 (CET1) ratio increasing to 11.18%, supported by cash earnings generation and capital management initiatives. The ratio remained above the Group’s management target range of 10.25% to 10.75%.

The Board declared a fully franked interim dividend of AU$0.20 per share, representing 75% of 1H26 cash earnings and aligning with the company’s targeted payout range of 60% to 75%.

Outlook Remains Focused on Digital Growth

Bank of Queensland expects to maintain financial resilience through strong capital, liquidity and asset quality. The Group continues to focus on commercial lending expansion, digital banking development and productivity improvements while navigating elevated competition and economic uncertainty.

Note- All data presented is based on information available at the time of writing.

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