The Bank of Queensland Ltd (ASX: BOQ) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $6.50. In morning trade on Wednesday, shares are changing hands for $6.82 apiece, up 4.9%.
For some context, the ASX 200 is down 0.1% at this same time.
This outperformance follows the release of the bank's half-year results for the six months ending 28 February (H1 FY 2025).
Here are the highlights.
Bank of Queensland share price soars on profit boost
- Statutory net profit after tax (NPAT) of $171 million, up 13% from H1 FY 2024
- Cash earnings after tax of $183 million, up 6% year on year
- Net interest margin (NIM), stable year on year at 1.57%
- CET1 increased 0.21% to 10.87%
- Fully franked dividend of 18 cents per share, up 5.9% from last year's interim dividend
What else happened during the half year?
Other core reported financial metrics that could impact the Bank of Queensland share price include a total half-year income of $793 million, which was in line with H1 FY 2024.
Net interest income of $725 million was also stable year on year, which management said reflected improved margins and a 1% contraction in average interest-earning assets (AIEA).
Non-interest income of $68 million was down 3% from the prior corresponding period, pressured by lower banking fees and trading income.
The 18 cents per share interim dividend reflects a 65.1% payout ratio of cash earnings, falling within the bank's stated target range.
On the cost front, operating expenses of $520 million were down 1% on H1 FY 2024. The ASX 200 bank stock said the benefits of its simplification program had more than offset inflationary pressures, increased investment in its business bank, digital transformation and the costs of risk mitigation measures.
Also likely catching investor attention, loan impairment expenses for the half year were down 80% from the prior corresponding period to $3 million.
What did management say?
Commenting on the results helping boost the Bank of Queensland share price today, CEO Patrick Allaway said, "We are making considerable progress transforming to a simpler, specialist bank with a superior customer experience through our digital platform and improved shareholder returns."
Allaway added:
These results demonstrate another half of disciplined execution against our strategy, delivering on market commitments.
Our improved performance and stable margin in the current operating environment validate our strategy to shift our portfolio towards higher-returning segments, and reposition the Retail Bank as a scalable, low cost to-serve digital bank.
What's next for the ASX 200 bank stock?
The ASX 200 bank stock didn't offer specific guidance regarding what could impact the Bank of Queensland share price in the months ahead.
Management did note that while the "evolving geopolitical environment has created significant uncertainty, the group remains optimistic about the longer-term view".
The bank also expects "a step up in headline margin" in H2 FY 2025, while expense growth for the year is expected to be broadly flat.
Capital is expected to remain in the management target range of 10.25% to 10.75%.
And Bank of Queensland's dividend payout ratio target range remains unchanged at 60% to 75% of cash earnings.
Bank of Queensland share price snapshot
With today's intraday gains factored in, the Bank of Queensland share price is up 18% since this time last year, not including dividends.
