Bank Of Queensland Limited · ASX:BOQ
Bank Of Queensland — Q2 2025 Earnings Presentation
67 slides from Bank Of Queensland's earnings presentation, Apr 16, 2025
Slide 1: 1H25 Investor Materials
16 APRIL 2025 1H25 INVESTOR MATERIALS Half year ended 28 February 2025
Slide 2: Important information and disclaimer
2025 HALF YEAR RESULTS PRESENTATION Important information and disclaimer This is a presentation of general background information about Bank of Queensland ABN 32 009 656 740 and its consolidated entities (BOQ’s) activities at the date of this document. It is in summary form, does not purport to be c
Slide 3: Contents
2025 HALF YEAR RESULTS PRESENTATION Contents 1H25 Results Presentation 4 About BOQ Group 32 Transformation Detail 37 Divisional Results 43 Portfolio Quality 49 Funding & Liquidity 57 Economic Assumptions 63 Abbreviations 66 3
Slide 4: 1H25 Results Presentation
1H25 RESULTS PRESENTATION 16 APRIL 2025 Half year ended 28 February 2025 4
Slide 5: Acknowledgement of Traditional Custodians
BOQ Group acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the land where we live and work. We pay our respects to Elders past and present. This artwork was commissioned through Merinda Watters, a proud Kamileroi woman. Titled Burrul gi-gi maguia (Growing T
Slide 6: Agenda
2025 HALF YEAR RESULTS PRESENTATION Agenda Introduction Summary & outlook Jessica Smith, General Manager Investor Relations & Patrick Allaway, Managing Director & Chief Executive Officer Corporate Affairs Q&A Results overview Patrick Allaway, Managing Director & Chief Executive Officer Patrick Allaw
Slide 7: Results Overview
RESULTS OVERVIEW Patrick Allaway Managing Director & Chief Executive Officer
Slide 8: Overview
2025 HALF YEAR RESULTS PRESENTATION Overview Considerable progress transforming to a simpler, specialist bank with an enhanced customer experience and improved returns 1. Cash and statutory earnings uplift to $183m (+6%) and $171m (+13%) respectively and 40bp ROE improvement on the prior comparative
Slide 9: Transforming to a simpler, specialist bank
2025 HALF YEAR RESULTS PRESENTATION Transforming to a simpler, specialist bank Disciplined execution of strategic initiatives, with further proof points toward improved returns Delivering through our strategic pillars… …for improved customer outcomes › Delivering on RAP milestones, with independent
Slide 10: 1H25 results
2025 HALF YEAR RESULTS PRESENTATION 1H25 results Disciplined execution of strategic initiatives, driving improved outcomes for our shareholders Key financial results ($m) 1H25 1H25 v 1H24 Total income 793 0% Operating expenses (520) (1%) Underlying profit 273 1% Loan impairment expense (3) (80%) Pro
Slide 11: Branch conversion
2025 HALF YEAR RESULTS PRESENTATION Branch conversion A strategic proprietary channel to drive targeted customer growth and increased returns Summary › Successfully completed branch conversion 1 March 2025 as planned › Higher returning proprietary channel due to commission free lending › Deposit gat
Slide 12: Retail banking overview
2025 HALF YEAR RESULTS PRESENTATION Retail banking overview Focus on transformation and interim return over growth, as we deliver our scalable low cost to serve digital bank Summary Home lending growth ($m) › Consistent execution of strategic initiatives 715 752 › OMB network successfully converted
Slide 13: Business banking overview
2025 HALF YEAR RESULTS PRESENTATION Business banking overview Accelerated lending growth reflects focused execution on targeted specialist segments Summary Lending growth ($m) › Business lending growth of 10%1 broadly in line with system 371 › Growth driven by focus on specialist sectors of healthca
Slide 14: Living our purpose and values
2025 HALF YEAR RESULTS PRESENTATION Living our purpose and values Supporting our customers, communities and people - 150-year Queensland heritage: renewed focus on Queensland, building on our foundational strength - Supporting the growth aspirations of ~160k businesses and helping ~210k households a
Slide 15: Strengthening BOQ
2025 HALF YEAR RESULTS PRESENTATION Strengthening BOQ Building stronger foundations through financial and operational resilience, and improved risk culture Key Achievements Progress Program rQ ✓ Material uplift in Board and management governance practices, strengthening DESIGN IMPLEMENT EMBED Streng
Slide 16: Simplifying BOQ
2025 HALF YEAR RESULTS PRESENTATION Simplifying BOQ Reducing complexity to enable scale, using size and agility as a competitive advantage FY26 $250m productivity target1 Focus areas 250 1 Operating Model › Consolidation of shared service activities › Review of supplier partnerships › Simplifying/co
Slide 17: Digitising BOQ | Lending
2025 HALF YEAR RESULTS PRESENTATION Digitising BOQ | Lending Our digital mortgage is fast, cost-efficient, scalable and delivers a superior customer experience CUSTOMER HOME LENDING Broker 1 Verification Officer 2 Settlement Officer 3 <1 50% TO 4 3 Solicitor Credit Officer Partner JOURNEY HAND- TIME
Slide 18: Digitising BOQ | Deposits
2025 HALF YEAR RESULTS PRESENTATION Digitising BOQ | Deposits Progressively scaling our digital platforms, improving our customer experience Growing our digital platforms… …delivering financial and customer outcomes SCALING CUSTOMER ENHANCED DIGITAL ~55% GROWTH EXPERIENCES ~45% Customer growth with
Slide 19: Optimising BOQ
2025 HALF YEAR RESULTS PRESENTATION Optimising BOQ Transformation benefits improving shareholder returns, escalating into FY26 Clear pathway to FY26 8% ROE & 56% CTI targets › Further accelerating the growth of our business bank and finance company, including targeted growth corridors in Queensland,
Slide 20: Financial Detail
FINANCIAL DETAIL Racheal Kellaway Chief Financial Officer
Slide 21: Financial performance
2025 HALF YEAR RESULTS PRESENTATION Financial performance Disciplined execution driving earnings improvement Key financial results ($m) 1H25 2H24 1H25 v 2H24 1H24 1H25 v 1H24 Net interest income 725 738 (2%) 725 0% Non-interest income 68 67 1% 70 (3%) Total income 793 805 (1%) 795 0% Operating expen
Slide 22: Non-cash items
2025 HALF YEAR RESULTS PRESENTATION Non-cash items Statutory adjustments reflect strategic decisions made to simplify the business Reconciliation of cash earnings to statutory net profit after tax ($m) 1H25 2H24 1H24 Cash earnings after tax 183 171 172 Branch strategy 1 (16) - - Restructuring costs2
Slide 23: Key elements
2025 HALF YEAR RESULTS PRESENTATION Key elements Stable income and margin, balance sheet mix reflects growth in higher returning segments Total income ($m) Net interest margin (%) 840 1.58 1.55 1.57 1.57 795 805 793 2H23 1H24 2H24 1H25 2H23 1H24 2H24 1H25 Lending GLAs ($bn) Customer deposit balances
Slide 24: Net interest margin
2025 HALF YEAR RESULTS PRESENTATION Net interest margin Disciplined balance sheet management resulting in resilient margin Summary 2H25 considerations › Targeted growth in attractive lending segments, offset by › 12bps uplift from branch conversion competitive market dynamics › Ongoing benefits from
Slide 25: Operating expenses
2025 HALF YEAR RESULTS PRESENTATION Operating expenses Lower total costs driven by simplification benefits and lower investment spend Operating expenses ($m) 2H25 considerations › Maintaining FY25 cost guidance, targeting 12 broadly flat total costs (25) › Persistent, but moderating inflationary pre
Slide 26: Transformation investment
2025 HALF YEAR RESULTS PRESENTATION Transformation investment Lower investment spend as the foundational digital bank build is largely complete Investment spend ($m) Summary › Past the peak of investment spend › Spend will transition to run and enhance, and support of ongoing regulatory uplifts › Am
Slide 27: Portfolio quality
2025 HALF YEAR RESULTS PRESENTATION Portfolio quality Portfolio quality remains sound, low impairment expense, lower impaired assets and broadly stable arrears Loan impairment expense Provisions ($m) LIE/GLA (bps) 332 332 316 310 9 4 1 1 271 273 264 264 37 15 5 3 61 59 52 46 2H23 1H24 2H24 1H25 2H23
Slide 28: Funding & liquidity
2025 HALF YEAR RESULTS PRESENTATION Funding & liquidity Strong funding and liquidity settings Liquidity strength1 Funding strength 83% 82% 84% 83% 154% 148% 132% 135% 71% 71% 72% 69% 128% 125% 122% 123% 2H23 1H24 2H24 1H25 2H23 1H24 2H24 1H25 Liquidity Coverage Ratio Net Stable Funding Ratio Deposit
Slide 29: Capital strength
2025 HALF YEAR RESULTS PRESENTATION Capital strength Strong capital position, 18c fully franked interim dividend Summary › CET1 ratio managed above the top end of the management target range1 › We expect to see a further ~15bps impact associated with the branch strategy in 2H25 › The DRP will operat
Slide 30: Summary & Outlook
GROUP SUMMARY & OUTLOOK BOs | | @=» | Boge | BOs
Slide 31: Summary & outlook
2025 HALF YEAR RESULTS PRESENTATION Summary & outlook Summary Outlook › Strong progress transforming to a simpler, specialist bank with › Highly unpredictable macro environment, qualifying our outlook enhanced customer experience › Entering a more volatile period with a resilient Australian economy
Slide 32: About BOQ Group
GROUP ABOUT BOQ GROUP BOs | | @=» | Boge | BOs
Slide 33: BOQ Group
2025 HALF YEAR RESULTS PRESENTATION BOQ Group Supporting customers for 150 years with differentiated brands attracting niche segments Our differentiators Key statistics for 1H25 › Proud 150-year Queensland heritage c. 9k BOQ Business › Highly specialised bankers serving niche industry segments c. 57
Slide 34: 2025 HALF YEAR RESULTS PRESENTATION
2025 HALF YEAR RESULTS PRESENTATION 34
Slide 35: How we create value
2025 HALF YEAR RESULTS PRESENTATION How we create value Customer Finance Personalised experiences delivered through Access to funding through customer multi-brand offering, new digital capability deposits, wholesale and capital markets to and BOQ’s relationship model support operations and execute o
Slide 36: Distribution network
2025 HALF YEAR RESULTS PRESENTATION Distribution network Summary as at 1 March 2025 › 1 March 2025 branch numbers at 120 (incl. transaction and service 1 26 centres) 85 2,348 8 21 › BOQ converted 114 of its Owner Managed branches to corporate 8 1,265 2,205 branches 10 1,372 › 18 Owner Managed branch
Slide 37: Transformation Detail
TRANSFORMATION DETAIL DETAIL 37
Slide 38: Our transformation
2025 HALF YEAR RESULTS PRESENTATION Our transformation Building a simpler, specialist bank Strategic pillars STRENGTHEN Improved risk culture, with strong financial and operational resilience SIMPLIFY Simplified bank, with improved productivity and efficiency DIGITISE Scalable low cost to serve digi
Slide 39: Strengthen | Remedial Action Plans Key Terms
2025 HALF YEAR RESULTS PRESENTATION Strengthen | Remedial Action Plans Key Terms Court Enforceable Undertakings – Key Terms Remedial Action Plans finalised and submitted: › Addressing underlying weaknesses › Setting clear and measurable actions › Timeline for completion and clear accountabilities th
Slide 40: Digitise | Roadmap
2025 HALF YEAR RESULTS PRESENTATION Digitise | Roadmap Digital strategy improving customer experience, providing strong deposit growth and lower cost to serve FY21 - 23 FY24 - 25 Post FY25 VMA and BOQ transaction and savings launched on new cloud Digital mortgage for all brands on new cloud digital
Slide 41: Digitise | Lending
2025 HALF YEAR RESULTS PRESENTATION Digitise | Lending An omni-channel offering with digitised processing, seamless customer origination and servicing experience Improved analytics Simplified product offering & reporting (>100 down to 2) Our Digital Home Lending Solution 3 hand off points to origina
Slide 42: Digitise | ME Migration
2025 HALF YEAR RESULTS PRESENTATION Digitise | ME Migration Transitioning to our target future state Summary ME customer migration1 › First phase of the ME migration complete ME Legacy ME Go › ~140k customers, 235k accounts and $1.55bn in deposits successfully migrated to the digital bank › Minimal
Slide 43: Divisional Results
GROUP DIVISIONAL RESULTS BOs | | @=» | Boge | BOs
Slide 44: Divisional performance
2025 HALF YEAR RESULTS PRESENTATION Divisional performance Retail Business 1H25 1H24 1H25 v 1H24 1H25 1H24 1H25 v 1H24 Net interest income 388 393 (1%) 339 329 3% Non-interest income 45 46 (2%) 23 21 10% Total income 433 439 (1%) 362 350 3% Operating expenses (358) (366) (2%) (162) (158) 3% Underlyi
Slide 45: Home lending performance
2025 HALF YEAR RESULTS PRESENTATION Home lending performance Housing metrics Housing application volumes (# ‘000)2, 3 Portfolio 1H25 Flow 20.9 18.8 0.8 0.2 16.7 14.4 LVR > 90% (%) 1.6 1.0 LVR > 80% (%) 9.9 10.1 11.3 0.1 10.5 8.2 90 Days past due (bps) 111 - 10.3 2.7 1.0 2.5 2.8 Interest only % (excl
Slide 46: Lending to households (APRA data)
2025 HALF YEAR RESULTS PRESENTATION Lending to households (APRA data) Lending to Households (APRA) Multiple (APRA) YTD (A) 3M (A) 1M YTD 3M 1M Market share Major 1 17.32% 14.76% 1.22% 3.2 3.0 3.7 5.87% Regional 1 12.11% 11.08% 0.84% 2.2 2.2 2.6 2.82% International 1 8.17% 6.94% 0.43% 1.5 1.4 1.3 2.7
Slide 47: Asset finance overview
2025 HALF YEAR RESULTS PRESENTATION Asset finance overview A strategic asset for the Group, delivering diversified asset-based lending to individual and business customers with a quality credit profile and capacity for further growth Summary Asset finance lending growth ($m) › A $6.9bn specialist bu
Slide 48: Lending to business (APRA data)
2025 HALF YEAR RESULTS PRESENTATION Lending to business (APRA data) Lending to Businesses (APRA) Multiple (APRA) YTD (A) 3M (A) 1M YTD 3M 1M Market share Major 1 16.57% 16.89% 1.79% 1.6 1.6 1.5 21.53% Major 2 13.11% 11.92% 1.51% 1.3 1.1 1.3 19.75% System 10.49% 10.54% 1.16% Regional 1 9.46% -1.00% -
Slide 49: Portfolio Quality
GROUP PORTFOLIO QUALITY BOs | | @=» | Boge | BOs
Slide 50: Collective provisioning
2025 HALF YEAR RESULTS PRESENTATION Collective provisioning Strong provisioning maintained, reflective of current environment Provision model assumptions Economic forecasts (calendar year) (%)1 Base Downside › Base case reflects BOQ’s forward looking economic assumptions and is supported by RBA fore
Slide 51: Housing loan portfolio
2025 HALF YEAR RESULTS PRESENTATION Housing loan portfolio Diversified portfolio with conservative LVR lending Summary Housing portfolio by geography (%) › Housing portfolio diversified across geography and channel 6% QLD 10% › ~98% of customers with LVR =<90%, with 1H25 flow above 90% at 31% NSW &
Slide 52: Asset finance portfolio
2025 HALF YEAR RESULTS PRESENTATION Asset finance portfolio Portfolio remains well diversified Summary Asset finance by geography (%) › Broad industry spread reducing concentration of asset finance 10% QLD portfolio 11% 30% NSW › Asset finance portfolio diversified across geography and channel VIC 2
Slide 53: Commercial portfolio
2025 HALF YEAR RESULTS PRESENTATION Commercial portfolio Continued focus on target segments Summary Commercial by geography (%) › Commercial portfolio diversified geographically 3% 6% QLD › Property and construction industry segments are well diversified 16% 36% NSW & ACT and performing well with no
Slide 54: Business Bank lending portfolio
2025 HALF YEAR RESULTS PRESENTATION Business Bank lending portfolio Well diversified and underpinned by quality security Summary › Business Bank portfolio diversified geographically with a diverse channel mix › The portfolio is well secured with less than c.13% of unsecured lending › No material ind
Slide 55: Industry and geographic split over time
2025 HALF YEAR RESULTS PRESENTATION Industry and geographic split over time1 Enhanced diversification over time Housing loans - geographic split over time (%) Summary 1H25 Balance Outstanding (%) 31% 30% 23% 10% 6% › Enhanced geographic diversification, Queensland housing portfolio reducing from 50%
Slide 56: Emerging risks to portfolio quality
2025 HALF YEAR RESULTS PRESENTATION Emerging risks to portfolio quality Macro economic environment › Modest additional reductions in the cash rate expected in 2025 › We expect moderate house price growth in 2025 albeit with a mixed performance across the country. Affordability remains a concern › Th
Slide 57: Funding & Liquidity
GROUP FUNDING & LIQUIDITY BOs | | @=» | Boge | BOs
Slide 58: Replicating portfolio
2025 HALF YEAR RESULTS PRESENTATION Replicating portfolio Summary Replicating portfolio › The replicating portfolio is a tool to manage 5% interest rate risk 4% › Replicating portfolio has an investment term Replicating Portfolio Return 3% of 5 years, this remains appropriate in current market condi
Slide 59: Hedging costs - basis risk
2025 HALF YEAR RESULTS PRESENTATION Hedging costs - basis risk Summary Long term basis risk avg - 17 bps › BOQ’s basis risk exposure fell in 1H25 due to at-call deposit growth 0.60% outpacing growth in variable rate assets › The impacts of hedging costs had a negative 0.4bp NIM impact in 1H25 0.40%
Slide 60: Funding
2025 HALF YEAR RESULTS PRESENTATION Funding Lending activities funded through stable sources, including customer deposits and long term wholesale funding Major maturities1, 2, 3 ($m) Deposit to loan ratio (%) 83% 82% 84% 83% 400 977 250 260 2H23 1H24 2H24 1H25 1,600 Customer at call deposit funding
Slide 61: Term deposits
2025 HALF YEAR RESULTS PRESENTATION Term deposits Summary › 1H25 growth in term deposits moderated due to lower funding requirements and strategic simplification of portfolios aligned with transformation roadmap › Term deposit and at-call acquisition pricing continued to be closely aligned through 1
Slide 62: Credit rating
2025 HALF YEAR RESULTS PRESENTATION Credit rating Current debt ratings1 Rating Agency Short Term Long Term Outlook S&P A-2 A- Negative Fitch F2 A- Stable Moody’s P-2 Baa1 Stable (1) The Bank monitors rating agency developments closely and is rated by Standard & Poor’s (S&P), Fitch Ratings and Moody’
Slide 63: Economic Assumptions
GROUP ECONOMIC ASSUMPTIONS BOs | | @=» | Boge | BOs
Slide 64: Macro economic environment
2025 HALF YEAR RESULTS PRESENTATION Macro economic environment1 Economic growth has started to improve with inflation easing Macro economic › Economic growth picked up in the second half of the calendar year 2024, with the labour market remaining strong › The improvement reflected a pickup in househ
Slide 65: Housing, business lending and deposit outlook
2025 HALF YEAR RESULTS PRESENTATION Housing, business lending and deposit outlook1 Economic growth is improving with inflation moderating Housing outlook Business lending outlook Deposits outlook › A modest further rise in the unemployment › The weakness of consumer spending has › Some further incre
Slide 66: Abbreviations
GROUP ABBREVIATIONS BOs | | @=» | Boge | BOs
Slide 67: Abbreviations
2025 HALF YEAR RESULTS PRESENTATION Abbreviations 3LOD: Three lines of defense DPD: Days past due NPAT: Net Profit After Tax 1H: First half of financial year DTL: Deposit to Loan NPS: Net Promoter Score 2H: Second half of the financial year ECDD: Enhanced Customer Due Diligence NSFR: Net Stable Fund