Bank of Queensland shares rise following FY26 results

Bank of Queensland shares rose over 5% following the release of its full-year results for the period ending August 31, 2026. The regional lender reported a significant 88% surge in statutory net profit after tax, reaching 250 million Australian dollars.

While statutory profit rose, cash earnings after tax declined by 7% to 358 million dollars. This decrease was attributed to a 157% rise in loan impairment expenses, which reached 54 million dollars, and the absence of a commercial lending write-back that had bolstered the previous year's figures.

Despite these challenges, investors reacted positively to signs of a second-half recovery. Cash earnings rose 3% in the second half of the year compared to the first half, supported by disciplined cost management and wider lending margins. The bank's net interest margin increased by 6 basis points to 1.70%.

Commercial lending grew by 16% during the year, driven by demand in the agriculture and healthcare sectors, though home lending saw an 8% decline due to lower settlement volumes and portfolio run-off. The board declared a steady final dividend of 20 cents per share.