Bank of Queensland half-year 2026: profit falls, dividend steady as revenue rises

The Bank of Queensland Ltd (ASX: BOQ) share price is in focus as the group reported half-year results to 28 February 2026 showing a 4% increase in revenue to $835 million, but a 20% drop in statutory net profit after tax to $136 million.

What did Bank of Queensland report?

• Revenue up 4% to $835 million
• Statutory NPAT down 20% to $136 million
• Cash earnings after tax down 4% to $176 million
• Interim fully franked dividend of 20 cents per share (flat on prior year)
• Net interest margin rose by 10 basis points to 1.67%
• Common Equity Tier 1 (CET1) ratio increased to 11.18%

What else do investors need to know?

BOQ’s business mix continued to shift towards commercial lending, which grew by 16% over the half, while housing loan balances contracted. Non-interest income rose 13%, mainly due to business lending fees and the benefits of the branch conversion program.

Operating expenses increased by 6%, reflecting higher costs from inflation, digital transformation, and investment in the business bank. However, the bank maintained provision coverage and asset quality, with arrears and impaired assets both decreasing since the last period.

What did Bank of Queensland management say?

Managing Director and CEO Rod Finch said:

The first half result demonstrates BOQ’s ongoing operational resilience and continued progress on our long-term strategy, including the successful transition to a digital platform and strengthened capital position.

What’s next for Bank of Queensland?

Looking ahead, BOQ expects to complete the sale of its equipment finance portfolio in the second half of FY26, freeing up capital and targeting a $300 million return to shareholders after completion. The group will continue to focus on commercial lending growth, digital banking expansion, and productivity initiatives, while keeping cost growth below inflation.

Management highlighted strong capital and liquidity positions and signalled home lending growth could return as digital mortgage channels mature in FY27. Digital transition and system migrations remain under way, with further progress expected over the coming year.

Bank of Queensland share price snapshot

Over the past 12 months, Bank of Queensland shares are flat, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

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The post Bank of Queensland half-year 2026: profit falls, dividend steady as revenue rises appeared first on The Motley Fool Australia.

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