Bank of Queensland shares fall, Citi trims earnings estimates

Bank of Queensland

11/08/2026 02:14

Updates
** Shares of Bank of Queensland BOQ.AX fall as much as 3% to A$6.625, posting their biggest intraday pct loss since May 4
   ** Citi says regional lender's A$295 million ($208.12 million) capital return on Monday largely in line with expectations
** Brokerage maintains "neutral" view and says momentum from BOQ's capital return has run its course, shifting focus to "challenging growth vs margin dynamics as market activity slows"
** BOQ also announced A$45 million technology-related impairment charge
** Citi cuts FY26 cash earnings estimate by 10% and FY27-28 estimate by 5% to reflect the impairment charge and adjust for the capital return
** Analysts at Morningstar, however, see BOQ's capital return and digital transformation as supporting long-term improvement, and maintain a "positive to neutral" view
** Morningstar maintains its A$7.20/share fair value estimate, emphasising future efficiency gains
** YTD, stock up 1.6%
     
($1 = 1.4174 Australian dollars)

 (Reporting by Shravya Marakini and Shruti Agarwal in Bengaluru)
 ((shravya.marakini@thomsonreuters.com;))