The Bank of Queensland Limited (BOQ) reported a significant performance uplift for the financial year ending 31 August 2025, marking progress in its transformation into a simpler, specialist bank. The Group recorded $383 million in cash earnings, a 12 per cent increase from the previous year, supported by improved customer experience, digital growth, and cost optimisation efforts.
Strategic Progress and Shareholder Returns
BOQ delivered statutory earnings after tax of $133 million, which included one‑off impacts linked to its strategic transformation. The Board declared a final dividend of 20 cents per share, representing a yield of about 5.5 per cent, calculated on a share price of $7.27 as of 29 August 2025. The return on equity increased by 70 basis points from FY24 as the bank optimised capital allocation and focused on higher‑returning assets.
Strengthening the Core Business
The Group continued strengthening operational resilience under two Court Enforceable Undertakings (EUs) with regulators APRA and AUSTRAC. Its Remedial Action Plans, Program rQ and AML First, reached 44 per cent completion. Program rQ aims to uplift governance and risk capability, while AML First enhances anti‑money laundering controls and compliance frameworks.
BOQ Chair Warwick Negus and Managing Director and CEO Patrick Allaway said in a joint statement that the bank’s progress reflects disciplined execution and a clear focus on customer and shareholder outcomes.
BOQ Managing Director and CEO, Patrick Allaway
Digital Banking Expansion
BOQ advanced its digital transformation with two major developments: a new digital mortgage product and the ongoing migration of customers to its digital platforms. The digital mortgage project is expected to reduce delivery and servicing costs by half compared to legacy processes. Almost half of BOQ’s retail customers now use its digital platforms, which maintain an average rating of 4.6 out of 5 on app stores, compared to 1.2 for legacy systems.
The migration of ME Bank customers continues, with completion expected in FY26. Once finished, ME will operate as the Group’s first fully end‑to‑end digital brand.
Simplifying Branch Operations
BOQ converted all franchised branches to corporate ownership by 1 March 2025. This move aligned with customers’ growing preference for digital channels and strengthened the bank’s ability to expand business banking presence across Australia. The conversion added 602 employees to the Group workforce and improved distribution efficiency.
Bank of Queensland Head Office
Investing in People and Leadership
BOQ strengthened its leadership framework with its flagship program “Lead on Q,” involving more than 200 leaders. Employee engagement rose to 73 per cent, while 83 per cent of staff reported feeling safe to speak up. The Group refreshed its Code of Conduct to emphasise integrity and accountability. In FY25, there were 68 breaches of the Code, resulting in 13 terminations.
Wellbeing initiatives continued through the 9‑Thrive framework, promoting a safe and healthy workplace. BOQ also launched a Prevention Plan addressing sexual harassment, discrimination, and workplace misconduct risks.
Customer Protection and Fraud Prevention
BOQ sustained a 98.3 per cent fraud and scam intervention rate, thanks to strengthened onboarding controls and biometric verification. The bank prevented or recovered $9.7 million in scam losses during the year. The introduction of cryptocurrency restrictions supported efforts to protect customers from investment scams, which remain the largest source of consumer losses nationwide.
Customer Support and Complaint Resolution
BOQ supported 4,098 customers through financial difficulty assistance in FY25, marking a 14 per cent increase from the previous year. The bank resolved 72 per cent of customer complaints on the same day they were raised, an improvement of 16 percentage points from FY24. Internal complaints rose by 127 per cent, and external complaints increased by 5 per cent, partly due to migration frictions and improved complaint detection during the transformation program.
Strengthening Community Partnerships
BOQ strengthened its community presence through partnerships with Orange Sky Australia, the Royal Queensland Show (Ekka), and the Queensland Rugby Union. The new Ekka partnership celebrates Queensland’s regional communities, with more than 75 employees volunteering during the event. The partnership with Queensland Rugby Union focuses on grassroots support, financial education, and youth engagement.
In collaboration with Orange Sky Australia, BOQ launched the “Empower Packs” volunteering program, encouraging employees to participate in fundraising and community outreach during “Orange Sky July.”
Financial and Operational Highlights
BOQ enhanced shareholder value through several financial metrics:
- Cash earnings: $383 million, up 12 per cent from FY24.
- ROE: Increased by 70 basis points.
- Dividends: $231 million paid, with fully franked dividends.
- Business lending: $20 billion.
- Housing loans: $58 billion.
- Customer deposits: $67 billion.
Technology and Automation Efficiency
The Group reported that 91 per cent of its technology assets are now stored securely in the cloud. Automation efforts covered 72 additional processes, primarily in customer service and back‑office functions. A new partnership with global digital services firm Capgemini will support automation, artificial intelligence utilisation, and expanded digital capacity.
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Sustainability and Governance
BOQ reaffirmed its commitment to the United Nations Principles for Responsible Banking and began preparing for mandatory climate‑related financial disclosures. Ethical business conduct, data governance, and customer resilience were key sustainability priorities. BOQ paid $314 million in taxes to the Australian Government during the financial year.
A limited assurance report by PricewaterhouseCoopers confirmed that BOQ’s non‑financial sustainability data for FY25 was prepared in accordance with reporting criteria. The auditors found no evidence of material misstatements.
Board and Leadership Changes
In April 2025, the Board welcomed Paul Riordan as an Independent Non‑Executive Director, bringing four decades of banking and governance experience. Chair Warwick Negus will retire on 24 October 2025 after nine years of service, with Andrew Fraser appointed as Chair Elect. BOQ also appointed Keith Strachan as Group Executive, Business Bank, effective 10 October 2025.
Outlook for 2026
BOQ expects moderate economic growth in FY26, supported by rising household incomes, though global uncertainty remains. The Group plans to expand its business banking portfolio while continuing to simplify operations and strengthen risk frameworks. CEO Patrick Allaway confirmed that BOQ’s transformation will continue, emphasising sustainable shareholder returns and improved customer experience.
