Bank of Queensland Ltd (BOQ.AU) saw its stock price soar by 5.08% in intraday trading following the release of its fiscal first-half results for 2025. The regional lender reported improved financial performance and announced a higher dividend, boosting investor confidence.
The bank's statutory net profit after tax increased by 13% to AU$171 million, while cash earnings after tax rose 6% to AU$183 million. BOQ maintained a stable net interest margin of 1.57% and reduced operating expenses by 1% to AU$520 million. The company's common equity tier 1 ratio stood at a solid 10.87%, demonstrating strong capital management.
In a move that particularly pleased shareholders, the board declared an interim fully franked dividend of 18 cents per share, up 6% from the previous year. This represents a payout ratio of 65.1% of cash earnings. CEO Patrick Allaway highlighted the bank's progress in transforming into a simpler, more customer-focused digital bank, emphasizing its strategy to shift towards higher-returning segments.