• Exploring $3.8 billion equipment finance portfolio sale to enhance capital flexibility and ROE
• Entering strategic partnership with Capgemini for IT and business processing services
• Expects FY25 cash earnings of $375-$385 million, up 9-12% on FY24

BOQ today announces two strategic initiatives and provides an update on unaudited year to date FY25 performance and FY26 financial targets. The first initiative is the exploration of a whole-of-loan sale process for up to ~$3.8 billion of its equipment finance portfolio. This proposed transaction aims to enhance capital flexibility, improve ROE and support scalable customer growth through an off-balance sheet forward flow origination and servicing arrangement. The second initiative is the entry into a strategic partnership with global technology services and digital transformation leader Capgemini for AI, IT and business processing services. This partnership is designed to further simplify BOQ's operating model, digitise processes, improve customer experience and support scalable growth. For the full year ending 31 August 2025, BOQ expects to report cash earnings after tax in the range of $375 - $385 million, up 9% to 12% on FY24, and a FY25 Cash ROE uplift of between 50 and 70 bps on FY24. BOQ is no longer providing specific ROE and Cost to Income (CTI) targets for FY26, citing an increasingly unpredictable operating environment and accelerating industry headwinds. However, the company remains confident in the strategic pathways to deliver continued improvement in ROE and CTI metrics.

For the full year ending 31 August 2025, BOQ expects to report cash earnings after tax in the range of $375 - $385 million, up 9% to 12% on FY24, and a FY25 Cash ROE uplift of between 50 and 70 bps on FY24.