BOQ Completes Whole-of-Loan Sale

• Completed sale of $3.62 billion equipment finance portfolio to Challenger Limited
• Sale represents key milestone in BOQ's transformation to a simpler, specialist bank
• Proceeds expected to reduce funding and provide return to shareholders

Bank of Queensland Limited (BOQ) has completed the sale of its previously announced whole-of-loan equipment finance portfolio to Challenger Limited (ASX: CGF), with $3.62 billion of assets sold. The completion of this transaction represents a key milestone in BOQ's transformation to a simpler, specialist bank, with improved returns. As previously announced, the proceeds of the sale are expected to reduce funding and, subject to regulatory and Board approval, provide a return to shareholders, through an on-market buyback of shares and a fully franked special dividend. The financial implications of the sale include a statutory loss of $31 million recorded in the first half of the year, and an estimated loss of $52 million to be recorded as an expense item in the 2026 financial statements, comprising a sale premium, reduction in the provision for expected credit losses, allocation of goodwill, the impact of interest rate swaps, transaction costs, and other items.