Why is the Bank of Queensland (ASX:BOQ) share price underperforming its sector today?

Let's find out.

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The Bank of Queensland Limited (ASX: BOQ) share price has struggled today.

At the time of writing, shares in the bank have tanked more than 3% in today's session.

By comparison, the broader S&P/ASX 200 Financials Index (ASX: XFJ) is down 2% today.

In addition, other banks like National Australia Bank Ltd. (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are both 1.8% lower today.

So why is the Bank of Queensland share price underperforming its sector today?

A woman dressed in red and standing in front of a red background peers thoughtfully at a piggy bank in her hand.

Image source: Getty Images

What's weighing down the Bank of Queensland share price?

In addition to struggling today, shares in Bank of Queensland have had a tough past week.

The bank has been under pressure after reports that ME Bank could get a penalty of up to $100 million.

A recent article by my Foolish colleague highlighted that ME Bank allegedly made false and misleading representations to borrowers.

However, the Bank of Queensland reportedly came across these allegations in the due diligence stage.

As a result, the regional bank was paid remediation of more than $100,000 before the acquisition.

Following a capital raise, the Bank of Queensland acquired ME Bank in early July for cash consideration of $1.325 billion.

More on the Bank of Queensland share price

Despite struggling today, shares in Bank of Queensland have had a stellar year thus far.

Since the start of 2021, the bank's share price has gained more than 22%.

By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to claw 9.5% for the year.

There have been various catalysts that have helped propel the Bank of Queensland share price higher this year.

The regional bank has had a strong start to the first half of FY21.

For the first half, Bank of Queensland recorded a 9% increase in cash earnings to $165 million and a 66% lift in statutory net profit after tax to $154 million.

The bank also boosted its interim dividend by 54% to 17 cents per share, fully franked.

Shares in the bank have also been on the receiving end of some positive broker reports.

Most recently, analysts at JPMorgan rated the Queensland-based bank as the third-best financial share on the market.

At the time of writing, shares in Bank of Queensland are more than 3% lower for the day, trading at their intra-day low of $9.13.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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