Bank of Queensland (ASX:BOQ) share price tumbles 4% on FY 2021 results

The Bank of Queensland Limited (ASX: BOQ) share price is tumbling lower on Wednesday.

At the time of writing, the regional bank's shares are down over 4% to $9.29.

Why is the Bank of Queensland share price falling?

Investors have been selling down the Bank of Queensland share price this morning following the release of its full year results.

For the 12 months ended 31 August, the regional bank reported an 83% increase in cash net profit after tax to $412 million. This was driven by a 13% increase in total income to $1.26 billion and its improving net interest margin (NIM).

The bank's strong profit growth allowed the board to declare a fully franked final dividend of 22 cents per share, which brought its full year dividend to 39 cents per share. This is up more than 200% from FY 2020's 12 cents per share dividend.

How does this compare to expectations?

Despite what the Bank of Queensland share price performance may indicate, this result was in line with expectations.

According to a note out of Goldman Sachs, its analysts were expecting cash earnings growth of 80% to $406 million, cash earnings per share of 66 cents, a NIM of 1.92%, and a final dividend of 22 cents per share.

This compares to the bank's actual result of cash earnings of $412 million, cash earnings per share of 74.7 cents, a NIM of 1.95%, and a final dividend of 22 cents per share.

So why are its shares falling?

The weakness in the Bank of Queensland share price appears to have been driven by its outlook and particularly comments relating to its NIM.

Management advised that it expects its "NIM to decline by c.5-7bps in FY22, as competition continues and the low interest rate environment remains."

However, it is worth noting that Goldman was forecasting such a decline. So, this could prove to be an overreaction by the market.

Goldman has a buy rating and $10.09 price target on the Bank of Queensland share price at present. Though, it has yet to respond to this results release and could amend its recommendation once it has run the rule over it.