• 12% increase in cash earnings after tax to $383m
• Net interest margin improved 8bps to 1.64%
• Simplification initiatives delivered flat operating expenses

Bank of Queensland Ltd (BOQ) today reported statutory net profit after tax of $133 million and cash earnings after tax of $383 million for the full year ended 31 August 2025 (FY25). The 12% increase in cash earnings was driven by 4% growth in revenues, flat expenses and a moderate loan impairment expense. Key financial metrics improved on the prior year, including a 70 basis point improvement in return on equity, a 210 basis point reduction in the cost-to-income ratio and an 8 basis point improvement in margin. The consistent and disciplined execution of the Group's strategy has delivered tangible financial and operational benefits, and improved shareholder returns in the period. Key strategic initiatives delivered in FY25 include the shift in balance sheet mix to improve returns, the migration of customers to a materially improved digital experience, the successful conversion of all owner-managed branches to BOQ's higher returning proprietary channel, and the simplification of the business to deliver sustainable cost reduction. The Group maintained strong financial resilience throughout the year with a closing CET1 ratio of 10.94%, a Liquidity Coverage Ratio (LCR) of 143% and strong provisioning on a sound portfolio of lending assets.

The Group expects expense growth to be sub-inflation in FY26, including an uplift from the full year impact of the converted branch network, higher investment and amortisation, partly offset by further simplification benefits. Loan impairment expense below long run average loss rates is expected to continue in the short term. There is no change to the CET1 capital management target range of 10.25 - 10.75% and the dividend payout ratio target range also remains unchanged at 60 - 75% of cash earnings.

The Australian economy is expected to strengthen further over the course of FY26, reflecting the benefits of lower inflation and stronger growth in household disposable incomes. Additional cash rate reductions in FY26 are expected and this should provide further support to the domestic economic outlook. Elevated competition for housing lending and quality business lending is anticipated to continue. There are risks to the margin outlook driven by the uncertainty of the depth and timing of cash rate movements, as well as a heightened competitive environment for lending and deposits.