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Full year ended 31 August 2025 FY25INVESTORMA TERIALS 15 OCTOBER 2025 For personal use only
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Bank of Queensland Limited ABN 32 009 656 740 (BOQ) Important information and disclaimer 2 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 complete and should be read in conjunction with BOQ’s other periodic and continuous disclosure announcements, including the 2025 Full Year Results Announcement (available at www.boq.com.au). All figures are presented on a cash earnings basis unless otherwise stated. No representations are made as to the accuracy, completeness or reliability of the information contained in this presentation as the information contained in this presentation may include information derived from publicly available sources that have not been independently verified. This presentation should not be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider these factors, and consult with their own legal, tax, business and/or financial advisors in connection with any investment decision. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell BOQ securities in any jurisdiction. This presentation may contain forward-looking statements about matters including BOQ’s business and operations, strategy, market conditions, results of operations and financial conditions, capital adequacy, specific provisions, potential synergies and risk management practices. These forward looking statements may be identified by the use of forward looking terminology, including the terms “believe”, “estimate”, “plan”, “target”, “project”, “anticipate”, “expect”, “intend”, “likely”, “may”, “will”, “could”, “should” or other similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events or intentions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward looking statements reflect BOQ’s current views about future events. There are a number of factors (which may involve known and unknown risks and uncertainties, many of which are outside the control of BOQ) that could cause BOQ’s financial performance and actual results to differ materially from those anticipated, or implied by, any forward-looking statements. These factors include changes in BOQ’s operating environment, material changes to the law or applicable regulation, risks and uncertainties associated with the Australian and global economic / political environment and capital market conditions. Readers should not place undue reliance on any forward-looking statements. To the maximum extent permitted by law, BOQ takes no responsibility for the accuracy or completeness of any forward-looking statements, whether as a result of new information, future events or results or otherwise, BOQ does not undertake to update any forward-looking statements contained in this document. 2025 FULL YEAR RESULTS PRESENTATION For personal use only
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3 FY25 Results Presentation 4 About BOQ Group 31 Transformation Detail 36 Divisional Results 44 Net Interest Margin 49 Portfolio Quality 53 Funding & Liquidity 61 Economic Assumptions 66 Abbreviations 69 Contents 2025 FULL YEAR RESULTS PRESENTATION For personal use only
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FY25 RESUL TS PRESENTATION 15 OCTOBER 2025 Full year ended 31 August 2025 4 For personal use only
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6 Introduction Jessica Smith, General Manager Investor Relations & Corporate Affairs Results overview Patrick Allaway, Managing Director & Chief Executive Officer Financial detail Racheal Kellaway, Chief Financial Officer The year ahead Patrick Allaway, Managing Director & Chief Executive Officer Q&A Patrick Allaway, Managing Director & Chief Executive Officer Racheal Kellaway, Chief Financial Officer Executive T eam & Senior Leaders Agenda 2025 FULL YEAR RESULTS PRESENTATION For personal use only
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RESUL TS OVERVIEW Patrick Allaway Managing Director & Chief Executive Officer For personal use only
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8 2025 FULL YEAR RESULTS PRESENTATION Overview Strong FY25 performance Delivered on strategic commitments Progressed productivity program Strong financial resilience Supported our customers and communities Improved financial performance 44% Of retail customers on the digital bank~1.5m Customers +70bps Return on equity+12% Cash NPAT 14% Growth in commercial lending 4% Reduction in underlying costs$71m In-year benefits 143% Liquidity coverage ratio10.94% CET1 ratio ✓ Digital mortgage Branch conversion✓ For personal use only
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FY25 FY25 v FY24 Total income 1,657 4% Operating expenses (1,072) 0% Underlying profit 585 10% Loan impairment expense (21) 5% Profit before tax 564 10% Income tax expense (181) - Cash earnings after tax 383 12% Statutory net profit after tax 133 (53%) Return on average tangible equity1 (%) 7.9 80bps Return on average equity (%) 6.4 70bps Basic cash earnings per share (cents) 58.3 12% Cost to income ratio (%) 64.7 (210bps) CET1 ratio (%) 10.94 28bps Dividends per ordinary share (fully franked)2 (cents) 38.0 12% 9 Key financial results ($m) (1) Based on net profit applied to average shareholders’ equity, less goodwill and identifiable intangible assets (2) The dividend will be fully franked, and the dividend reinvestment plan will operate with no discount and is expected to be satisfied in full by an on-market purchase of shares FY25 results Year-on-year improvement across key financial metrics 2025 FULL YEAR RESULTS PRESENTATION For personal use only
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10 2025 FULL YEAR RESULTS PRESENTATION Living our purpose and values Building on our 150-year Queensland heritage, supporting our customers, communities and people Our people - Refreshed Code of Conduct - Improved performance framework and increased investment in capability - Implemented new Culture Transformation Index, providing a baseline of 65% for future cultural transformation activities - Improved People Experience Index increasing 2% to 73%, through a period of significant change - Progressed risk mindset and behaviours with our Risk Culture Index increasing 3% to 72% over the year Sustainability - Deepened engagement with industry, regulators and stakeholders - Progressed implementation of the UN’s Principles for Responsible Banking - Preparing for mandatory climate-related financial disclosures: enhancing governance and focusing on quantifying climate risk metrics Customer & communities - Launched Bank of Queenslanders campaign - Deployed Business bankers in regional growth corridors following conversion to a proprietary branch channel - Supported >4,000 customers through financial difficulties - Improved hardship application processes, average approval rates of 65% were up 5% on FY24 - Enhanced onboarding controls in the digital bank, leading to fraud and scam intervention rates of 98.3% - Resolved complaints at a faster rate, with 72% resolved on the day they were received and 85% within five days - Supported our communities through partnerships with: Orange Sky Australia, Queensland Rugby Union, Royal Queensland Show (Ekka), Beyond Blue, Clontarf Foundation, Australian Wildlife Conservancy, Minus18, Stars Foundation, and National Breast Cancer Foundation For personal use only
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11 2025 FULL YEAR RESULTS PRESENTATION T ransforming to a simpler, specialist bank Delivering our transformation with strong execution, improving customer outcomes, and financial performance › Strengthened operational & financial resiliency and protected our customers › Completed 44% of total RAP activities across both programs, with improved risk management practices, governance, and regulatory engagement › Increased investment in the RAP following an updated assessment of activities to complete the programs STRENGTHEN › Transformed and simplified distribution channels via successful conversion of owner managed branches on time and on budget › Delivering FY26 $250m productivity program initiative › Announced information technology and business processing partnership, annualised cost savings of at least $30m to be achieved from FY27 SIMPLIFY › Successfully launched and commenced the origination of loans on the new digital mortgage platform › ~50% of ME customers migrated to new digital platform, full ME migration on track to complete in FY26 › 91% of BOQ’s target state IT applications are now on the cloud, with a further 41 IT assets decommissioned this year DIGITISE › Shifting balance sheet mix from lower returning home lending to higher returning business segments › Expanded proprietary acquisition channel as a result of the branch conversion, 13bps half-on-half Group margin uplift › Exploring off-balance sheet capital partnerships and forward flow agreements OPTIMISE For personal use only
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› Operating model changes, with ~850 roles impacted › Simplified distribution channels via successful OMB conversion › Property footprint reduction of ~15,000sqm and third-party savings across the Group › 91% of BOQ’s target state IT applications now on the cloud › Strategic partnership announced with global technology provider Capgemini to accelerate digital and AI transformation and consolidate vendors 12 Productivity program progress Disciplined focus on productivity and reducing complexity 2025 FULL YEAR RESULTS PRESENTATION FY26 $250m productivity program Delivered Note: Profile is indicative and subject to changing prioritisation (1) Includes full run rate benefits delivered on exit of FY26 FY26 focus areas › Decommissioning heritage ME systems and heritage bank, full annualised benefits realised in FY27 › Optimising operating model reducing spans, layers and FTE › Simplifying/consolidating distribution channels › Adopting the use of AI tools, leveraging our strategic partnerships with Microsoft and Capgemini - 250 FY23 FY24 FY25 FY26 Operating model Technology Property & procurement Process & automation 1 For personal use only
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- 6 12 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H25 Deposit balances Home loan balances 2H24 1H25 2H25 1H26 ME Heritage ME Go - 250 500 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H25 BOQ ME VMA 13 Digital bank growth Scaling growth on our digital platforms, improving customer experience and operational efficiency and resilience 2025 FULL YEAR RESULTS PRESENTATION Digital bank customer growth (# ‘000) 1 Digital bank balances ($bn) ME customer migration2 First phase complete and home loan migration commenced All customers migrated ahead of decommissioning in 2H26 (1) Includes active deposit, linked credit cards, and home loan customers (2) Profile is indicative and subject to changing prioritisation For personal use only
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14 Digital bank experience Improving digital experience, delivering greater customer and financial outcomes 2025 FULL YEAR RESULTS PRESENTATION App store ratings Note: App store ratings as at 9 September 2025, ratings are out of 5. Heritage applications rate on average 1.2 (1) Retail customers in August 2025, excluding offsets (2) For simple application types eligible for straight through processing, median of 4 days across all home loan types and complexities (3) Future functionality releases scheduled in FY26 and FY27 4.6 4.5 4.6 Deposits Lending 66% Of active digital deposit customers aged between 25 – 54 ~20% Reduction in cost to originate, ~50% following full functionality releases3 81% Of new personal deposit accounts originated on the digital platform1 $22k Average savings & investments balance ~85% Home lending volume flow on the digital bank by FY27 <90sec To conditional approval 1 day T o unconditional approval2 For personal use only
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13% 17% 8% 9% FY22 FY25 Housing and consumer Business Asset finance 15 Asset mix Funding mix 2025 FULL YEAR RESULTS PRESENTATION Balance sheet strategy Optimising asset and funding mix, structurally shifting both sides of the balance sheet 78% 74% Proprietary +19% Proprietary 33% 28% FY22 FY25 Customer deposits Wholesale funding +6% At-call1 At-call1 67% 72% +4% (1) Customer at call deposits includes transaction and savings & investments accounts. Excludes offset accounts and term deposits -5% For personal use only
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Summary 16 Home lending growth ($m) Deposit funding ($bn) › Year-on-year Retail Bank profitability up 24% › Consistent execution of strategic initiatives including branch conversion, ME migration, and digital mortgage launch › Clear distribution strategy supporting customer preferences: › Scalable digital growth for home lending and deposits › Higher returning proprietary channel through branch strategy › New distribution partnership, leveraging Virgin Australia’s 13m Velocity Frequent Flyer members › Home lending prioritised through lower cost to acquire ME channel, continued moderation of total home lending volumes driven by: › Capital deployed to higher returning business lending › Paused heritage origination for VMA and BOQ broker › Branch conversion impacts, in-line with expectations › Slowing decline of home lending anticipated in FY26 Retail banking overview Focus on transformation and returns as we deliver our scalable low cost to serve digital bank 2025 FULL YEAR RESULTS PRESENTATION 462 732 2,028 (327) (1,276) (1,368)(876) (509) (3,739) (741) (1,053) (3,079) FY23 FY24 FY25 ME Bank VMA BOQ 13.9 14.5 13.0 14.7 14.6 14.7 3.6 3.5 3.6 4.2 4.3 4.2 36.4 36.9 35.5 FY23 FY24 FY25 Term deposits Savings & investments Transaction accounts Offsets For personal use only
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17 Business banking overview Growth through focused execution on targeted higher returning specialist segments Summary Lending growth ($m) › Year-on-year Business Bank profitability up 10% › Prioritisation of returns over volume growth in a competitive market › Commercial lending growth of 14% driven by focus on specialist segments of healthcare, agriculture, and diversified businesses › Branch conversion enabling location of bankers in key growth corridors, supporting regional SME customers › Strong value proposition attracting bankers, 35 now onboarded with strong commercial lending results › Underlying Asset finance growth of $237m driven by novated leasing and structured finance1 › Focused on accelerating growth through onboarding further bankers in FY26 Deposit funding ($bn) 2025 FULL YEAR RESULTS PRESENTATION 627 323 1,74150 110 (1,218) 677 433 523 FY23 FY24 FY25 Business lending & Asset finance Housing & consumer 2.3 2.2 1.4 5.3 5.2 5.1 1.8 1.8 1.8 1.3 1.4 1.2 10.7 10.5 9.6 FY23 FY24 FY25 Term deposits Savings & investments Transaction accounts Offsets (1) Excludes run-off from decision to cease origination in cash flow finance For personal use only
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FINANCIAL DETAIL Racheal Kellaway Chief Financial Officer For personal use only
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FY25 FY25 v FY24 2H25 2H25 v 1H25 Net interest income 1,515 4% 790 9% Non-interest income 142 4% 74 9% Total income 1,657 4% 864 9% Operating expenses (1,072) 0% (552) 6% Underlying profit 585 10% 312 14% Loan impairment expense (21) 5% (18) large Cash earnings after tax 383 12% 200 9% 19 Key financial results ($m) 2025 FULL YEAR RESULTS PRESENTATION Financial performance Delivery of strategic commitments driving increase in full year cash earnings For personal use only
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20 (1) Further detail has been provided in BOQ’s FY25 Annual Report and its disclosure to the ASX dated 3 October 2025 (2) Costs of converting the Owner Managed branch network to corporate branches by March 2025 and costs associated with the optimisation of the network. Further detail has been provided in BOQ’s FY25 Annual Report and also its disclosure to the ASX dated 22 August 2024 (3) Further detail has been provided in BOQ’s FY25 and FY24 Annual Report and also its disclosure to the ASX dated 28 August 2025 and 22 August 2024 (4) Further detail has been provided in BOQ’s FY25 Annual Report and its disclosure to the ASX dated 28 August 2025 (5) The sale of New Zealand asset portfolio was completed on 31 March 2024. Further detail has been provided in BOQ’s FY24 Annual Report and also its disclosure to the ASX dated 2 April 2024 and 2 February 2024 2025 FULL YEAR RESULTS PRESENTATION Reconciliation of cash earnings to statutory net profit after tax ($m) Non-cash items Statutory adjustments reflect strategic decisions made to strengthen and simplify the business FY25 FY24 2H25 1H25 Cash earnings after tax 383 343 200 183 Goodwill impairment1 (170) - (170) - Branch strategy2 (43) - (27) (16) Restructuring costs 3 (25) (33) (25) - Remedial action plans4 (14) - (14) - Hedging and fair value changes (1) (4) (2) 1 Amortisation of acquisition fair value adjustments 3 1 - 3 Sale of New Zealand asset portfolio5 - (22) - - Statutory net profit after tax 133 285 (38) 171 For personal use only
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21 2025 FULL YEAR RESULTS PRESENTATION Net interest margin (%) – 1H25 to 2H25 Net interest margin Step change 13bps improvement in margin driven by branch strategy 1.57% 1.70% (0.04%) (0.01%) 0.12% 0.06% 1H25 Third party costs Lending Funding Liquidity and other 2H25 › Uncertainty due to cash rate movements › Competition for both lending and deposits remains elevated › Ongoing benefits from balance sheet mix 1H26 considerations › Replicating portfolio benefits offset by unhedged elements › Modest impacts from higher liquid assets and basis hedging › Stable impact from third party costs +1bp underlying NIM improvement +13bp NIM improvement +4bps pricing +2bps asset mix -3bps pricing -1bp retail mix +1bp replicating portfolio -1bp uninvested LCD -1bp liquidity+12bps branch strategy For personal use only
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› Full year impacts from the branch conversion › Transition costs relating to IT and business processing › Amortisation increasing in line with delivery of transformation 1,069 1,072 (5) (71) 25 0 12 42 FY24 Inflation Other Simplification Investment Amortisation Branch conversion FY25 Run the bank Simplification Investment 22 2025 FULL YEAR RESULTS PRESENTATION Operating expenses ($m) Operating expenses 4% reduction in underlying costs driven by sustainable delivery of productivity benefits 4% reduction in underlying costs Costs flat year-on-year 1 (1) Other includes increased technology, risk & compliance costs which were offset by lower property related costs and professional fees (2) Investment includes -$11m Group investment portfolio spend and +$6m in business bank growth 2 FY26 considerations › Continued investment in the business bank › Inflation in-line with RBA target range › Simplification benefits, full impacts of ME decommissioning in FY27 For personal use only
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Software intangible asset balances ($m) 212 304 326 257 188 FY21 FY22 FY23 FY24 FY25 23 2025 FULL YEAR RESULTS PRESENTATION T ransformation investment Continuing to invest at a sustainable level following the build of the digital bank Investment spend ($m) FY25 FY24 FY25 v FY24 Software intangible assets 460 254 81% Assets under construction 107 308 (65%) Total carrying value of technology assets 567 562 1% 133 176 183 308 107 246 263 280 254 460 379 439 463 562 567 FY21 FY22 FY23 FY24 FY25 Assets under construction Software intangible assets For personal use only
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24 Housing, Asset finance and Commercial arrears 90DPD (bps) Loan impairment expense by portfolio ($m) Impaired assets ($m) 2025 FULL YEAR RESULTS PRESENTATION Portfolio quality Portfolio quality remains sound, impairment expense below long-run averages LIE/GLA (bps) 1 1 5 Loan impairment expense 5 3 18 2H24 1H25 2H25 Loan impairment expense ($m) 20 17 22 59 56 44 24 22 28 103 95 94 2H24 1H25 2H25 Housing & consumer Commercial Asset finance 112 111 114 135 117 7475 93 90 Aug-24 Feb-25 Aug-25 Housing Commercial Asset finance 2H24 1H25 2H25 Housing & consumer 5 12 (9) Commercial (2) (24) 2 Asset finance 2 15 25 For personal use only
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237 307 328 Base Reported provisions Downside ~$70m above base scenario 25 2025 FULL YEAR RESULTS PRESENTATION Provisioning Strong provisioning maintained, reflective of current environment Provisions ($m) Provisioning to standardised credit RWA coverage (%) Provision scenarios (Aug-25) ($m) 52 46 48 264 264 259 316 310 307 2H24 1H25 2H25 Specific Collective 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% BOQ Peer 1 Peer 2 Major 1 Major 2 Major 3 Major 4 Major 5 Industry avg. For personal use only
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26 2025 FULL YEAR RESULTS PRESENTATION Funding & liquidity Strong funding and liquidity settings Liquidity strength1 Funding strength Funding mix ($bn) Customer deposit balances ($bn) (1) Liquidity coverage ratio reported on a quarterly average basis and net stable funding ratio reported on a spot basis 67.4 66.3 66.7 9.8 9.7 9.9 17.9 16.7 16.3 95.1 92.7 92.9 2H24 1H25 2H25 Customer deposits Short term wholesale Long term wholesale 145% 142% 143% 125% 123% 124% 2H24 1H25 2H25 Liquidity coverage ratio Net stable funding ratio 25.0 23.6 22.4 31.5 31.7 33.6 5.3 5.4 5.45.6 5.7 5.4 67.4 66.3 66.7 2H24 1H25 2H25 Term Deposits Savings & Investments Transaction Accounts Offsets 71% 72% 72% 84% 83% 86% 2H24 1H25 2H25 Deposit funding % of total funding Deposit to loan ratio For personal use only
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10.87% 10.94% (0.30%) (0.15%) (0.09%) 0.50% 0.09% 0.02% 1H25 Earnings Dividend RWA Investment Branch strategy Other movements 2H25 27 CET1 (%) – 1H25 to 2H25 2025 FULL YEAR RESULTS PRESENTATION Summary Capital strength Strong capital position, 20c fully franked final dividend Note: CET1 includes a $50m capital overlay as determined by APRA in relation to BOQ’s Court Enforceable Undertaking (1) Management target range unchanged at 10.25–10.75% (2) 1H25 dividend of 18c, DRP operated with no discount and was satisfied in full by an on-market purchase of shares. Participation was 8.7% (3) RWA includes loan origination costs and a 6bps reduction in securitisation (4) Capitalised expenses net of amortisation (5) Other movement includes restructuring costs and an increase to the provision for the Remedial Action Plans announced in August 2025 › CET1 ratio managed above the top end of the management target range1 › The DRP will operate with no discount and is expected to be satisfied in full by an on-market purchase of shares › Strong position supporting resilience, the capacity to continue to transform the business, and growth of higher returning assets 2 3 4 5 For personal use only
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THE YEAR AHEAD For personal use only
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29 2025 FULL YEAR RESULTS PRESENTATION Outlook Australian economy improving in an uncertain environment, elevated industry competition continuing › Highly unpredictable geopolitical environment, increasing risks in the economic and financial outlook › Australian economic growth recovering › Support recommendations from the Council of Financial Regulators, creating a fairer playing field for mid-tier and smaller banks › Continued elevated competition in FY26 for home lending and quality business lending: › T argeting growth at system in business lending › Slowing decline of home lending anticipated › Risks to margin outlook › Targeting sub inflation cost growth, including amortisation and the full year impact of the branch conversion › Loan impairment expense below long run average loss experience is expected in the short term › No change to management CET1 or dividend payout target range1,2 (1) CET1 target range of 10.25–10.75% (2) Dividend payout range of 60 – 75% of cash earnings, the amount of any dividend will be at the discretion of the Board For personal use only
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30 2025 FULL YEAR RESULTS PRESENTATION FY26 priorities 1. Optimising balance sheet mix and performance across both lending and funding 2. Scaling retail deposits and home lending through the proprietary digital platform 3. Accelerating the growth of our business bank in targeted specialist segments 4. Implementing and embedding improved risk practices through our remedial action plans 5. Executing the final year of the productivity program, decommissioning ME heritage systems to realise the full annualised benefits in FY27 6. Transforming to our target state customer first culture, driving agility and collaboration for improved customer outcomes BOQ’s preparedness to confront challenges and proven execution capability are critical enablers to our evolution and success Delivering on our strategy, leveraging competitive strengths; 150 year Queensland heritage, specialist business bank, and scalable digital bank For personal use only
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ABOUT BOQ GROUP 31 For personal use only
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32 Our differentiators Our distinctive brands › Proud 150-year Queensland heritage › Highly specialised bankers serving niche industry segments › Unique brand propositions › Building an innovative digital offering › Agility and proven execution capability Key statistics for FY25 (1) Footings refer to gross loans and advances plus customer deposits (2) Internal BOQ Analysis and APRA monthly authorised deposit-taking institution statistics excluding International banks, August 2025 (3) Excludes BOQF ~1.5m Customers ~570k BOQ ~390k VMA ~360k ME ~10k BOQ Business ~30k Specialist ~70k Finance ~50k Retail SME 86% Deposit to loan ratio 2.32%2 Market share - Housing 1.38%2,3 Market share - Business 111 Branches 43 ME Mobile & Direct Bankers ~3.8k Employees $145b Footings1 2025 FULL YEAR RESULTS PRESENTATION BOQ Group Supporting customers for over 150 years with differentiated brands attracting niche segmentsBusiness Retail Bank of Queenslanders Make it all rewardable Makes sense to ME For personal use only
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33 2025 FULL YEAR RESULTS PRESENTATION For personal use only
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DIGITAL BANKING 34 2025 FULL YEAR RESULTS PRESENTATION How we create value Technology & Data Capabilities Building new capabilities and leveraging our strategic partnerships to modernise and digitise the Group, providing great customer and people experiences more securely and effectively Environment & Climate Change Responsible corporate citizen, seeking to actively support customer transitions to a more resilient, lower carbon-intensive economy Finance Access to funding through customer deposits, wholesale debt and capital markets to support operations and execute our strategy Community Passionate bankers embedded in the community forming strong community relationships and supporting vulnerable Australians Customer Personalised experiences delivered through digital and relationship banking People Diverse and engaged workforce, building future fit capabilities For personal use only
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35 Summary as at 31 August 2025 8 1,327 4 1,528 26 23 80 2,266 6 2,415 7961 891 13 3,966 9 4,768 6 3.412 20 4.616 97 2 146 2025 FULL YEAR RESULTS PRESENTATION Distribution network 2 2 1 OMB Corporate Trans. Centre Total 31 August 2024 114 17 9 140 31 August 2025 - 103 8 111 Note: VMA stopped accepting home loan applications for new customers through the broker channel from 1 September 2023 Note: New South Wales includes branches, mobile bankers, and brokers accredited with BOQ and ME located in the ACT (1) Includes 103 branches and 8 transaction and service centres 111 CORPORATE BRANCHES1 11,890 BROKERS ACCREDITED WITH BOQ 43 ME MOBILE & DIRECT BANKERS 14,387 BROKERS ACCREDITED WITH ME › Branch conversion successfully completed 1 March 2025 as planned › 26 converted branches subsequently closed as part of the Group’s broader branch footprint optimisation For personal use only
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TRANSFORMATION DETAIL DETAIL 36 For personal use only
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37 2025 FULL YEAR RESULTS PRESENTATION Our transformation Building a simpler, specialist bank STRENGTHEN SIMPLIFY DIGITISE OPTIMISE Improved risk culture, with strong financial and operational resilience Simplified bank, with improved productivity and efficiency Exceptional customer and people experience Strategic pillars Scalable low cost to serve digital banking platform, with improved customer experience Focusing on our competitive advantage, delivering improved returns with a strong capital position For personal use only
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38 Strengthen | Remedial action plans key terms 2025 FULL YEAR RESULTS PRESENTATION 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 that are specific, measurable and achievable Independent review: › Appointment of Independent reviewer to report on appropriateness of APRA EU Remedial Action Plan and progress › Appointment of external auditor to periodically report on the AUSTRAC EU Remedial Action Plan has been finalised to the satisfaction of AUSTRAC Accountability › Ensure accountability for the remediation activities in the performance scorecards of accountable and responsible persons specified in the plan and other staff 2022 › Internal and independent reviews › APRA Prudential review › New strategic priority to Strengthen BOQ, acknowledging uplift in risk maturity is required 2023 › Increased financial resilience: higher CET1 and LCR › Raised $60m provision for Remedial Action Plans › Court Enforceable Undertakings to APRA and AUSTRAC › Remedial Action Plans formulated and submitted to regulators › AML First Program mobilised and operating › Executive and Board consequence management 2024+ › Design, implement and embed › Finalise Remedial Action Plans › Strengthen the Bank For personal use only
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Key Achievements Progress as at 31 August 2025 Program rQ Strengthen risk culture, governance, and financial and operational resilience to be a stronger, simpler and digitally enabled bank ✓ 51 RAP activities completed and closed, representing 31% of all activities ✓ Launched an enhanced program management and enterprise change management framework ✓ Launched an enterprise-wide Leadership Development Program – Lead on Q ✓ Uplift of the Risk Management Framework and development of Risk Practice Standards ✓ Completed the design of the new GRC system for risk assessment, obligation management, risk event and issue management ✓ Embedded accountability practices for improved oversight and enterprise decision making AML First An enterprise-wide remediation and transformation program designed to address weaknesses and gaps across AML / CTF operating model ✓ 93 RAP activities completed and closed, representing 59% of all activities ✓ Strengthened governance in relation to transaction mapping and detection scenario uplift ✓ Demonstrated success with name screening of customers for AML/CTF risks ✓ Deployment of updated BOQ Group mandatory training to enhance awareness across AML/CTF requirements ✓ Significant reductions of duplicative customer profiles or inactive customer relationships 39 Strengthen | Remedial action plan progress 2025 FULL YEAR RESULTS PRESENTATION Legend: Commenced ClosedNot started DESIGN IMPLEMENT EMBED 1% 30% 69% 18% 73% 8% 92% 8% 44% 19% 37% 19% 30% 52% 4%13% 83% For personal use only
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40 Digitise | Roadmap Digital strategy improving customer experience, providing strong deposit growth and lower cost to serve 2025 FULL YEAR RESULTS PRESENTATION Achieved On track Reprioritised (delayed)Legend New VMA and BOQ transaction and savings launched on new cloud digital bank ME customers migrated to v.18, Ultracs decommissioned (7 apps, 51 servers) ME transaction and savings launched on new cloud digital bank Leasing systems consolidated on latest version of InfoLease Upgraded internet banking capability for SMEs Business Bank Temenos core banking platform upgraded to latest v.22 Enhanced working capital product capability Digital mortgage for all brands on new cloud digital bank Commence ME home loan migration to new digital bank and decommissioning of legacy platform Unified origination system across all retail brands Deposit only ME customers’ migration to new digital bank commenced Commence payments hub build Group Business Bank Unified 360 view of customers across the Business Bank Commence T24 upgrade to v.24 and move to cloud Pilot Market Rate Loan (MRL) on T24 Retail Bank BOQ/VMA customer migration completed Complex home loan and retail small business migrated to BOQS Retire BOQ legacy systems Digital personal loans for all brands on new digital bank Data centres migrated to private cloud Intelligent data platform Implement Customer Experience Platform Real time connectivity of data insights Data centres migrated to public cloud Integrated cloud-based data platform enabling omni-channel personalisation Cloud based ERP platform (Finance & HR) FY21 - 23 FY24 - 25 Post FY25 New lending origination capability (complex home loan customers serviced by Business Bank) Integrated supply chain capability Digital transaction account capability for small business Migration of SME, Agri and Property customers to new core Unified origination system across all Business Bank brands Enhanced payments hub, enabling critical use cases For personal use only
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41 Digitise | Lending An omni-channel offering with digitised processing, seamless customer origination and servicing experience 2025 FULL YEAR RESULTS PRESENTATION Compliant by design process & technology Scalable growth and sustainable design Multi brand functionality with straight through processing Digital contracts & electronic signatures Self service loan variations Materially faster 'Time to Yes' Processing time reduced by ~66% Multi-Brand, Multi-Channel 1st & 3rd party distribution solution Attractive loyalty & engagement rewards Simplified product offering (>100 down to 2) Real time notifications Our Digital Home Lending Solution 100% automated digital communication Over 35 in-app service functions 3 hand off points to originate (down from 18) Self managed offset accounts Easy and guided flow onboarding ~50% lower cost to originate Upfront credit decisioning & leveraging data over documents Improved analytics & reporting For personal use only
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CUSTOMER HOME LENDING JOURNEY 42 Digitise | Lending Our digital mortgage is fast, cost-efficient, scalable and delivers a superior customer experience 2025 FULL YEAR RESULTS PRESENTATION Note: Heritage process refers to VMA and BOQ heritage loan origination process (1) 4 handoffs if a more complex loan requiring higher credit delegation (2) Same day time to yes for simple refinance; joint applicants, PAYG, no lenders mortgage insurance and all supporting documentation provided up front (3) Cost reduction per application origination, based on original brand and channel baseline mix 3 <1 50% HAND- OFFS1 TIME TO YES2 COST3 18 20 $$ Broker Verification Officer Credit Officer Settlement Officer Solicitor Partner 1 2 34 TOFROM For personal use only
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43 2025 FULL YEAR RESULTS PRESENTATION Optimising BOQ Focus on improving shareholder returns, year-on-year ROE uplift of 70bps and CTI improvement of 210bps › FY26 $250m productivity initiative offsetting inflation, investment, materially higher amortisation and cost of running branch network1 › Simplifying our operating model, distribution channels, and property footprint › Decommissioning systems and heritage bank, moving to our future state technology stack › T aking action to reduce third party spend › ~$30m in annualised cost savings expected to be achieved from FY27 via information technology and business processing partnership EXPENSES › Accelerating growth in higher returning, specialist segments › Scaling home lending growth via our low-cost to serve digital banking platform › Growing third party non-interest income, exploring off-balance sheet initiatives › Further optimising the performance of proprietary distribution channels REVENUE › Further optimising our allocation of capital › Exploring a whole-of-loan sale and forward flow agreement for up to $3.8 billion of BOQ’s equipment finance assets › Peak home lending contraction in FY25 with higher returning growth as we phase digital mortgages and grow proprietary channels › Scaling lower cost funding on our digital platform BALANCE SHEET (1) All 114 owner managed branches converted by 1 March 2025. From this date the ongoing operating cost of this channel are included in BOQ’s operating expenses For personal use only
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DIVISIONAL RESUL TS 44 For personal use only
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FY25 FY24 FY25 v FY24 FY25 FY24 FY25 v FY24 Net interest income 807 791 2% 713 672 6% Non-interest income 94 88 7% 50 45 11% Total income 901 879 3% 763 717 6% Operating expenses (738) (746) (1%) (334) (323) 3% Underlying profit 163 133 23% 429 394 9% Loan impairment expense (2) (1) 100% (19) (19) 0% Profit before tax 161 132 22% 410 375 9% Income tax expense (52) (44) 18% (131) (122) 7% Cash earnings after tax 109 88 24% 279 253 10% Retail Business 45 2025 FULL YEAR RESULTS PRESENTATION Divisional performance For personal use only
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46 Housing metrics Housing application volumes (# ‘000)2 (1) Multiple based on YTD system to August 2025, APRA monthly banking statistics (2) VMA stopped accepting home loan applications for new customers through broker channel from 1 September 2023, BOQ stopped accepting home loan applications for new customers through broker channel from 1 September 2024 Portfolio FY25 Flow LVR > 90% (%) 1 0.7 LVR > 80% (%) 8.4 8.6 90 Days past due (bps) 114 - Interest only % (excl. construction) 10 16 Investor % 29 33 PAYG % 81.0 86.6 DTI >=6x % - 1.2 Fixed % 9 14 Broker % 54 60 BOQ system growth1 - Negative ME system growth1 - 1.3x Overall BOQ Group system growth3 - Negative Serviceability buffer Customer repayment ability assessed on the higher of the minimum floor rate which is currently 5.75% or actual customer interest rate plus buffer of 3% 2025 FULL YEAR RESULTS PRESENTATION Home lending performance 4.6 3.2 2.7 1.1 0.6 0.4 2.8 0.2 0.1 8.2 10.3 11.1 0.1 0.1 16.7 14.4 14.4 2H24 1H25 2H25 BOQ BOQS BOQ broker ME Bank VMA BOQ proprietary application volumes (3-week average) Momentum rebuilding in proprietary BOQ channels Branch conversion For personal use only
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Source: APRA Monthly Banking Statistics September 2024 to August 2025 Note: Majors comprise CBA, NAB, WBC, ANZ and Macquarie, Regionals comprise SUN and BEN and Internationals comprise HSBC and ING 47 Lending to Households (APRA) Multiple (APRA) YTD (A) 3M (A) 1M YTD 3M 1M Market share Major 1 21.60% 26.25% 1.89% 3.7 4.1 3.8 6.37% International 1 11.90% 16.85% 1.30% 2.0 2.6 2.6 2.88% ME 7.43% 8.94% 0.53% 1.3 1.4 1.1 1.23% International 2 6.55% 6.49% 0.63% 1.1 1.0 1.3 1.42% Major 2 6.16% 6.84% 0.54% 1.0 1.1 1.1 25.34% System 5.91% 6.46% 0.49% Major 3 5.26% 3.84% 0.31% 0.9 0.6 0.6 13.50% Major 4 5.26% 6.02% 0.43% 0.9 0.9 0.9 14.26% Regional 1 5.08% 3.45% -0.03% 0.9 0.5 Neg 2.40% Regional 2 4.94% -6.30% -0.68% 0.8 Neg Neg 2.71% Major 5 2.77% 3.74% 0.34% 0.5 0.6 0.7 20.73% BOQ + ME -6.63% -10.95% -0.90% Neg Neg Neg 2.32% BOQ -18.69% -31.28% -2.47% Neg Neg Neg 1.09% 2025 FULL YEAR RESULTS PRESENTATION Lending to households (APRA data) For personal use only
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Lending to Businesses (APRA) Multiple (APRA) YTD (A) 3M (A) 1M YTD 3M 1M Market share Regional 1 15.75% 25.56% 1.02% 1.5 2.1 1.1 1.01% Major 1 13.70% 15.53% 1.32% 1.3 1.3 1.4 20.02% Major 2 12.81% 10.47% 0.21% 1.2 0.9 0.2 21.30% System 10.79% 12.27% 0.95% BOQ 9.16% 17.82% 1.25% 0.8 1.5 1.3 1.38% Major 3 8.97% 15.33% 1.19% 0.8 1.2 1.2 25.15% Major 4 8.43% 3.17% 1.58% 0.8 0.3 1.7 1.99% Major 5 7.15% 6.96% 1.18% 0.7 0.6 1.2 15.06% International 1 6.30% 14.17% -0.23% 0.6 1.2 Neg 2.03% Regional 2 2.64% 6.33% 0.58% 0.2 0.5 0.6 1.53% Regional 3 0.07% 6.51% 0.46% 0.0 0.5 0.5 1.22% International 2 -3.31% -23.26% -5.53% Neg Neg Neg 0.24% International 3 -10.13% -14.08% 0.65% Neg Neg 0.7 1.12% 48 Source: APRA Monthly Banking Statistics September 2024 to August 2025 Note: Majors comprise CBA, NAB, WBC, ANZ and Macquarie, Regionals comprise SUN, JDO and BEN and Internationals comprise HSBC, Rabobank and ING 2025 FULL YEAR RESULTS PRESENTATION Lending to business (APRA data) For personal use only
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NET INTEREST MARGIN 49 For personal use only
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50 2025 FULL YEAR RESULTS PRESENTATION Net interest margin – FY24 to FY25 1.56% 1.64% (0.04%) 0.05% 0.03% 0.04% FY24 Third party costs Lending Funding Liquidity and other FY25 Net interest margin (%) – FY24 to FY25 +5bps asset mix +4bps pricing -6bps retention & FTBB +2bps funding mix -4bps pricing -2bps wholesale funding +6bps capital and LCDs -1bp liquidity -1bp hedging +6bps branch strategy -1bp broker costs For personal use only
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0% 1% 2% 3% 4% 5% Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Aug-25 51 Replicating portfolio › The replicating portfolio is a tool to manage interest rate risk › Replicating portfolio has an investment term of 5 years, this remains appropriate in current market conditions › The portfolio contributed 1.6bps to NIM in 2H25 › For every 0.25% decrease to the RBA cash rate, the uninvested capital and low cost deposit portfolio will decrease NIM by less than 1bp Summary 1H25 Balance ($bn) 2H25 Balance ($bn) 2H25 Avg. Return Exit Return Rate Investment Term Capital 4.1 4.1 3.54% 3.57% 5 years Low cost deposits 4.2 4.2 3.33% 3.38% 5 years Total replicating portfolio 8.3 8.3 3.44% 3.48% 5 years Uninvested capital and low cost deposits 2.9 2.8 3.98% 3.68% 3 months1 2025 FULL YEAR RESULTS PRESENTATION Replicating portfolio Replicating Portfolio Return 3M BBSW RBA Official Cash Rate (1) Invested at the overnight cash rate plus 6 months average of the 3 month Bills/OIS spread for a 1 year tenor For personal use only
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52 Long term basis risk avg - 8 bps › BOQ’s basis risk exposure fell in 2H25 due to at-call deposit growth outpacing growth in variable rate assets › The impacts of hedging costs had a <1bp NIM impact in 2H25 › Current sensitivity is less than 1bp of NIM for every 10bps in basis spread Summary 2025 FULL YEAR RESULTS PRESENTATION Hedging costs - basis risk -0.10% 0.00% 0.10% 0.20% 0.30% Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Aug-25 For personal use only
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PORTFOLIO QUALITY 53 For personal use only
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54 Unemployment rate (%) Economic forecasts (calendar year) (%)1 Scenario weights (1) Economic forecasts reflect calendar year end numbers and were prepared as at August 2025, based on RBA and market consensus at the time and prepared for the purpose of collective provision updates House price index (%) Base Downside 2025 2026 2027 2025 2026 2027 GDP (YoY growth %) 1.7 2.1 2.0 1.0 (0.7) 0.6 Unemployment rate (%) 4.3 4.3 4.3 4.5 6.7 7.3 Residential Property Prices (cumulative % change) 4.4 5.9 4.8 0.8 (9.4) (4.6) Commercial Property Prices (cumulative % change) 2.0 1.6 1.6 (2.3) (12.0) (7.1) Cash Rate (%) 3.4 2.9 3.1 3.5 2.6 2.5 Upside Base Downside Severe 2025 2024 2025 2024 2025 2024 2025 2024 Weighting 5% 5% 50% 50% 30% 30% 15% 15% 2025 FULL YEAR RESULTS PRESENTATION Collective provisioning 2.0% 4.0% 6.0% 0.0% 4.0% 8.0% For personal use only
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30% 30% 24% 10% 6% QLD NSW & ACT VIC WA Other 55 Summary Housing portfolio by geography (%) Housing portfolio by channel (%) › Housing portfolio diversified across geography and channel › ~99% of customers with LVR =<90%, with FY25 flow above 90% at 0.7% › ~92% of customers with LVR =<80%, with FY25 flow above 80% at 8.6% Housing portfolio by LVR (%) 2025 FULL YEAR RESULTS PRESENTATION Housing loan portfolio Diversified portfolio with conservative LVR lending 42% 21% 28% 8%1% Up to and including 60% >60% to 70% >70% to 80% >80% to 90% Greater than 90% 27% 8% 10%4%12% 39% BOQ Proprietary BOQ Broker BOQS VMA ME Proprietary ME Broker For personal use only
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56 Summary › Commercial portfolio diversified geographically › Property and construction industry segments are well diversified and performing well with no material indication of stress. These segments will continue to be monitored given current market conditions Commercial by industry (%) 2025 FULL YEAR RESULTS PRESENTATION Commercial portfolio Continued focus on target segments 37% 22% 6% 6% 5% 7% 17% Property Health Care Construction Professional Accommodation Agriculture Other Commercial by geography (%) 33% 44% 15% 6%2% QLD NSW & ACT VIC WA Other For personal use only
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57 Summary Asset finance by geography (%) Asset finance by channel (%) › Broad industry spread reducing concentration of asset finance portfolio › Asset finance portfolio diversified across geography and channel Asset finance by industry (%) 2025 FULL YEAR RESULTS PRESENTATION Asset finance portfolio Portfolio remains well diversified 31% 25% 23% 11% 10% QLD NSW VIC WA Other 19% 12% 6% 8%5%7%3% 11% 29% Construction Transport Manufacturing Agriculture Retail & Whs Trade Rental, Hiring Professional Health Care Other 57% 7% 14% 10% 1% 1% 10% Equipment Finance Structured Finance Novated Leases Dealer Finance Insurance Premium Funding Vendor Finance BOQS For personal use only
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58 2025 FULL 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 13% of unsecured lending › No material industry stresses emerging and losses remain low Business portfolio security status by industry 92.3% 81.7% 89.6% 95.4% 60.2% 96.0% 93.8% 84.5% 7.8% 18.3% 10.4% 4.6% 39.9% 4.0% 6.2% 15.5% 0% 10% 20% 30% Property Health care Construction Agriculture Professional Transport Accomm' & food Other industries Secured Unsecured For personal use only
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59 (1) FY17 has not been restated to include ME (2) Excludes consumer Housing loans - geographic split over time (%) Summary › Enhanced geographic diversification, Queensland housing portfolio reducing from 50% in FY17 to 30% in FY25 › The addition of ME has further diversified the geographic diversity of the housing portfolio › Asset finance and Commercial lending portfolios remain diversified across a broad range of industries Commercial - industry segments over time (%) Asset finance - industry segments over time (%) T otal lending - geographic split over time2 (%) 2025 FULL YEAR RESULTS PRESENTATION Industry and geographic split over time1 Enhanced diversification over time 50% 30% 21% 30% 14% 24% 12% 10% 3% 6% FY17 Balance Outstanding (%) FY25 Balance Outstanding (%) QLD NSW & ACT VIC WA Other 15% 19% 21% 11% 13% 12% 8% 6% 8% 8% 8% 5% 27% 39% FY17 Balance Outstanding (%) FY25 Balance Outstanding (%) Construction Health Care Transport Manufacturing Agriculture Retail Trade Other 29% 37% 22% 22% 8% 6% 11% 6% 7% 5% 7% 23% 17% FY17 Balance Outstanding (%) FY25 Balance Outstanding (%) Property Health Care Construction Professional Accommodation Agriculture Other 38% 31% 27% 32% 19% 22% 8% 9% 8% 6% FY17 Balance Outstanding (%) FY25 Balance Outstanding (%) QLD NSW VIC WA Other For personal use only
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Macro economic environment 60 › Modest additional reductions in the cash rate are expected in 2026 › We anticipate mid-to-high single digit house price growth in 2026 albeit with a mixed performance across the country, affordability remains a concern › Geopolitical uncertainty including the potential for further developments in US trade policy is the major risk facing the domestic economy › Heightened valuations means financial markets are vulnerable to any significant changes to the economic outlook › The labour market has weakened, although it remains historically strong › Business margins have been compressed by higher costs and slowing revenue growth Outlook for credit losses › Loan impairment expense remains at historically low levels, provisions have been stable and below long run average loss experience is expected in the short term › BOQ has retained its collective provision scenario weights with 45% weighting to downside scenarios. Downside weightings cater for the impact of potential downturns on loss experience › Overlays in place for key industries expected to be impacted by economic uncertainty and any segments of the portfolio undergoing stress › With a well secured portfolio and prudent provisioning levels, BOQ is well positioned if a change in the credit loss environment was to occur 2025 FULL YEAR RESULTS PRESENTATION Emerging risks to portfolio quality For personal use only
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FUNDING & LIQUIDITY 61 For personal use only
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62 Long term wholesale funding ($bn) Customer at call deposit funding costs4 2025 FULL YEAR RESULTS PRESENTATION Funding (1) Any transaction issued in a currency other than AUD is shown in the applicable AUD equivalent hedged amount (2) Senior unsecured maturities greater than or equal to $100m shown but excludes private placements (3) Redemption of subordinated debt notes and additional tier 1 notes at the scheduled call date is at BOQ’s option and is subject to obtaining prior written approval from APRA (4) Customer at call deposits includes retail and commercial transaction and savings, and treasury retail accounts. Excludes offset accounts and term deposits Major maturities1, 2, 3 ($m) 990 900 1,600 900896 900 977 1,050 260 400 250 400 250 1H26 2H26 1H27 2H27 1H28 2H28 1H29 2H29 1H30 2H30 1H31 Senior unsecured Covered bonds Additional Tier 1 Subordinated debt 25% 32% 34% 5% 6% 2%9% 2% 2%3% 3% 16% 26% 39% 46% 31% 18% 2H24 1H25 2H25 >5.00% >4.00% - <=5.00% >3.00% - <=4.00% >2.00% - <=3.00% >1.00% - <=2.00% <1.00% $36.7bn $37.1bn $38.8bn 7.6 6.8 6.2 3.8 3.8 4.1 5.2 4.5 4.4 1.3 1.6 1.6 17.9 16.7 16.3 2H24 1H25 2H25 Securitisation Covered bond Senior unsecured Additional Tier 1 notes / Subordinated debt For personal use only
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141.8% 142.9% 11.8% (4.8%) (4.5%) (1.4%) Feb-25 HQLA Customer deposits Wholesale funding Other cash outflows Aug-25 63 LCR waterfall (Feb-25 to Aug-25)LCR (Aug-25) – 142.9% 2025 FULL YEAR RESULTS PRESENTATION Liquidity coverage ratio (LCR) HIGH QUALITY LIQUID ASSETS CUSTOMER DEPOSITS WHOLESALE FUNDING OTHER CASH OUTFLOWS $17.1bn $12.0bn Liquid assets Net cash outflows Note: Liquidity coverage ratio reported on a quarterly average basis For personal use only
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122.7% 124.2% 1.0% 0.3% 1.5% 0.4% (0.7%) (1.0%) Feb-25 Capital Customer deposits Wholesale funding & other liabilities Residential mortgages ≤ 80% loan to value ratio Other loans Other assets Aug-25 64 NSFR waterfall (Feb-25 to Aug-25)NSFR (Aug-25) – 124.2% 2025 FULL YEAR RESULTS PRESENTATION Net stable funding ratio (NSFR) Note: Net stable funding ratio reported on a spot basis CAPITAL CUSTOMER DEPOSITS WHOLESALE FUNDING AND OTHER LIABILITIES LIQUIDS AND OTHER ASSETS RESIDENTIAL MORTGAGES ≤ 80% LOAN TO VALUE RATIO OTHER LOANS $58.0bn Available stable funding Required stable funding $72.0bn For personal use only
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65 Current debt ratings1 (1) The Bank monitors rating agency developments closely and is rated by Standard & Poor’s (S&P), Fitch Ratings and Moody’s Investor Service Rating Agency Short Term Long Term Outlook S&P A-2 A- Negative Fitch F2 A- Stable Moody’s P-2 Baa1 Stable 2025 FULL YEAR RESULTS PRESENTATION Credit rating For personal use only
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ECONOMIC ASSUMPTIONS 66 For personal use only
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67 Macro economic (1) BOQ house view › Economic growth picked up over the course of the 2025 financial year › Despite the modest rise in the unemployment rate the labour market remains historically strong › The economic pickup principally reflected an improvement in household disposable incomes › Stronger consumer spending should in time boost capex spending › We expect some further reductions in the cash rate this financial year › Global economic developments are the principal cause of uncertainty about the economic outlook 2025 FULL YEAR RESULTS PRESENTATION Macro economic environment1 Economic growth is improving, inflation is close to target For personal use only
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68 Housing outlook (1) BOQ house view (2) BOQ financial year to August 2026 › A modest further rise in the unemployment rate is forecast for this financial year › The improvement in disposable incomes is boosting consumer confidence › Affordability remains a significant issue in the housing market › Interest rate reductions should boost house price growth, with outcomes mixed across the regions › Housing credit is projected to grow by around 6% in the coming financial year2 Deposits outlookBusiness lending outlook ›There has been a pickup in the growth of order books ›Developments in the global economy may yet impact business confidence ›Cost inflation remains an issue, although pressures are easing ›Worker availability remains a constraint for some sectors, although is less of a problem than it was in 2022-23 ›Business credit is expected to grow by around 5% in the 2026 financial year2 › Stronger income growth should boost savings, partially offset by the impact of lower interest rates › Term deposit demand to recover as rates re-align closer to at-call rates › Deposit growth is expected to be around 7.5% in the next financial year2 2025 FULL YEAR RESULTS PRESENTATION Housing, business lending and deposit outlook1 Economic growth is improving, inflation is close to target For personal use only
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ABBREVIATIONS 69 For personal use only
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70 1H: First half of financial year CTF: Counter Terrorism Financing NIM: Net Interest Margin 2H: Second half of the financial year DTI: Debt to income ratio NPAT: Net Profit After Tax 90DPD: 90 days past due DPD: Days past due NSFR: Net Stable Funding Ratio AML: Anti-Money Laundering ERP: Enterprise Resource Planning OMB: Owner Managed Branch APRA: Australian Prudential Regulation Authority EU: Enforceable Undertaking OIS: Overnight Index Swap ASX: Australian Securities Exchange FTBB: Front to back book PAYG: Pay As You Go AUD: Australian Dollar FTE: Full Time Equivalent RAP: Remedial Action Plans AUSTRAC: Australian Transaction Reports and Analysis Centre FY: Financial year RBA: Reserve Bank of Australia Avg: Average GDP: Gross Domestic Product ROE: Return on equity BBSW: Bank Bill Swap Rate GLA: Gross Loans & Advances ROTE: Return on tangible equity BOQ: Bank of Queensland GRC: Governance, Risk and Compliance RWA: Risk-weighted assets BOQF: Bank of Queensland Finance HQLA: High Quality Liquid Assets SME: Small and Medium Enterprises BOQS: Bank of Queensland Specialist IT: Information technology TD: Term deposit Bps: basis points LCD: Low cost deposits TTY: Time to yes CET1: Common Equity Tier 1 LCR: Liquidity Coverage Ratio UN: United Nations CFR: Council of Financial Regulators LIE: Loan Impairment Expense VMA: Virgin Money Australia CTI: Cost-to-income ratio LVR: Loan to Valuation Ratio YTD: Year to Date 2025 FULL YEAR RESULTS PRESENTATION Abbreviations For personal use only