Strong capitalization Low risk lending book dominated by housing loans Future business growth susceptible to underperformance of owner-manager branch networks and lagging digital infrastructure compared to peers Weaker capacity to source funding in a stressed operating environment The stable outlook reflects S&P Global Ratings' view that the Bank of Queensland Ltd. (BoQ) has a defendable business position in the highly competitive Australian retail banking market. This position is reinforced by BoQ's somewhat successful execution of its multichannel distribution strategy over the past few years. Recent sound loan growth in the bank's Virgin Money Australia (VMA), BoQ Specialist, and BoQ Finance brands has offset challenges facing other areas of the retail bank, in particular BoQ's existing owner-manager branch network. The stable
