Bank of Queensland reported a 4% increase in revenues to $1.668 billion for FY25, yet profits after tax fell sharply by 53% to $133 million. Despite the profit decline, the bank declared a fully franked 20 cent dividend for the full year.
- Revenues increased 4% to $1.668 billion
- Profit after tax down 53% to $133 million
- Full year fully franked dividend raised to 20 cents per share
- Net tangible assets per share stable at around $7.35
- Disposal of joint venture interests including Dalyellup and Provence 2
Revenue Growth Amid Profit Pressure
Bank of Queensland Limited (BOQ) has released its financial results for the year ended 31 August 2025, revealing a mixed performance. The bank managed to grow its revenues by 4% to $1.668 billion, reflecting steady business activity and possibly improved lending or fee income streams. However, this topline growth was overshadowed by a significant 53% drop in profit after tax, which fell to $133 million. This sharp decline raises questions about underlying cost pressures, credit impairments, or other one-off impacts that have weighed heavily on the bottom line.
Dividend Policy and Shareholder Returns
Despite the profit setback, BOQ has maintained a shareholder-friendly stance by declaring a fully franked full-year dividend of 20 cents per share, payable in November 2025. This represents a modest increase from the prior interim dividend of 18 cents and the previous full-year dividend of 17 cents. The stable net tangible assets per share, hovering around $7.35, suggest the bank’s balance sheet remains solid, providing some reassurance to investors amid earnings volatility.
Strategic Asset Disposals
The year also saw BOQ actively managing its investment portfolio, notably disposing of its interest in Provence 2 Pty Ltd during the year and completing the sale of its stake in the Dalyellup joint venture shortly after the reporting date. These joint ventures, primarily involved in land subdivision and development, were legacy holdings from the Home Building Society acquisition in 2007. The divestments may signal a strategic refocus on core banking operations or a move to streamline non-core assets.
Looking Ahead
While the revenue growth is a positive indicator, the steep profit decline will likely prompt analysts and investors to scrutinize the detailed FY25 Annual Report for explanations. Key areas of interest will include credit quality trends, cost management effectiveness, and any extraordinary items impacting earnings. The bank’s ability to sustain dividends despite earnings pressure also suggests confidence in its capital position and future cash flows.
Bottom Line?
BOQ’s FY25 results highlight resilience in revenue but underline urgent questions about profit sustainability and strategic direction.
Questions in the middle?
- What specific factors drove the 53% profit decline despite revenue growth?
- How will the disposal of joint ventures impact BOQ’s future earnings and capital allocation?
- Can BOQ maintain or grow dividends if profit pressures continue?