UBS says Australia's BOQ equipment finance portfolio sale a positive

Challenger

07/04/2026 20:12

** UBS says Bank of Queensland's BOQ.AX A$3.7 billion ($2.57 billion) sale of its equipment finance portfolio to investment manager Challenger CGF.AX a positive

** BOQ said on Tuesday that through deal it expects to return about A$300 million to shareholders through on market buy back and special dividends

** UBS says move aligns with lender's strategy to focus on areas of the Australian banking sector where it can compete more effectively and transition towards a more specialized, capital-efficient banking model

** UBS 'buy' rated on co with A$7.50 price target, compared with 'hold' recommendation in avg among 12 analysts with median PT A$6.40, as per LSEG-compiled data

** Stock closed up 6.9% last session after announcement; up 11.3% YTD

($1 = 1.4388 Australian dollars)

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))