Bank of Queensland (BOQ) has released its latest APRA Basel III Pillar 3 update, revealing a minor decrease in capital ratios despite a reduction in risk-weighted assets (RWA). As of May 31, the bank’s Common Equity Tier 1 (CET1) ratio stood at 10.80 per cent, a decrease of 7 basis points compared to February. This slight dip primarily reflects the impact of the interim dividend payout and capitalised branch costs. BOQ is a retail bank that provides a range of financial products and services, including home loans, savings accounts, and business banking. It aims to provide customers with personalised service and tailored financial solutions.
Total risk-weighted assets decreased by $340 million, bringing the total to $39.9 billion. This reduction was attributed to lower exposures in both residential and corporate credit portfolios. The bank’s Tier 1 ratio was 12.45 per cent, while the Total Capital Ratio reached 15.06 per cent. Both of these figures remain within BOQ’s internal target ranges. Capital ratios are key indicators of a bank’s financial health, showing the proportion of its capital relative to its risk-weighted assets.
BOQ’s liquidity position remains strong, with a Liquidity Coverage Ratio (LCR) averaging 141 per cent, slightly below the level recorded in the February quarter. The Net Stable Funding Ratio (NSFR) remained steady at 123. The bank highlighted increased wholesale maturities and inflows from securitisation activities during the quarter. Despite these movements, BOQ maintains a substantial buffer above the minimum regulatory liquidity requirements.
The figures were disclosed in accordance with APRA’s revised disclosure standards. These reports offer comprehensive insights into a bank’s capital adequacy, risk exposures, and overall liquidity position, ensuring transparency and market stability.