ASX 200 company Bank of Queensland Ltd (ASX: BOQ) is in focus today after the company announced a $170 million goodwill impairment in its Retail Bank CGU, reducing its carrying value to zero. The impairment, linked to industry changes and a higher discount rate, will not affect BOQ's FY25 cash earnings or capital position.
What did Bank of Queensland report?
- $170 million goodwill impairment to be recognised in Retail Bank CGU in 2H25
- No impact to FY25 cash earnings
- No impact to CET1 capital ratio
- Impairment to be recorded in FY25 statutory profit after tax
- BOQ maintains target final dividend payout range of 60–75% of cash earnings
What else do investors need to know?
This goodwill charge mainly relates to BOQ's 2007 acquisition of Home Building Society Limited. Management explained the impairment results from uncertainty around structural shifts in retail banking, reflected in a change to the discount rate used for asset valuation.
BOQ is also updating its financial disclosures to enhance transparency. Group and divisional Gross Loans and Advances and Customer Deposits will no longer be reported on an annualised basis, bringing BOQ's reporting approaches more in line with market practice.
The full-year results for FY25, covering the period ended 31 August 2025, will be released on Wednesday, 15 October 2025, alongside a virtual briefing for investors.
What's next for Bank of Queensland?
BOQ anticipates paying a fully franked final dividend for FY25 within its previous payout range, though the amount is at the Board's discretion. The company will provide more details on strategy and performance at the upcoming results announcement.
Investors can expect further updates on how BOQ is navigating industry changes and maintaining capital strength as it continues to adapt its business for the evolving financial landscape.
Bank of Queensland share price snapshot
Over the past 12 months, Bank of Queensland shares have risen 20%, outpacing the S&P/ASX 200 Index (ASX: XJO) which has increased 9% over the same period.
