BOQ FY26 Cash Earnings Fall 7% as Home Lending Shrinks

Bank of Queensland reported its FY26 result, showing higher statutory profit but lower cash earnings as home lending contracted, and set out plans for a return to home lending growth in FY27.

Statutory net profit after tax was $250 million, up 88% on FY25, primarily due to a goodwill impairment in FY25. Cash earnings after tax excluding notable items were $358 million, down 7%, while cash earnings after tax were $325 million, down 15%, after $47 million of notable items for impaired technology and other assets. Total income rose 1% to $1,679 million and net interest margin rose 6 basis points to 1.70%. Loan impairment expense rose $33m to $54 million, mainly on the non-recurrence of a FY25 commercial lending provision release. Home lending contracted $4.6 billion, or 8%, while commercial lending grew 16%. CET1 rose 70 basis points to 11.64%, helped by capital released from the $3.6 billion whole-of-loan sale of equipment finance assets under the capital partnership with Challenger Limited. The final dividend is 20 cents per share fully franked, following a 15 cent special dividend paid in August. For FY27, BOQ (ASX:BOQ) is targeting flat annual cost growth and expects a modest uplift in margin in 1H27, subject to market conditions.

Pro-forma CET1 after the remaining on-market buy-back is 11.14%, with ~$11m of the planned $196m bought by 31 August 2026. The release gives no FY27 profit guidance, and its outlook assumes no material change in market conditions.