SYDNEY (S&P Global Ratings) Oct. 16, 2024--Bank of Queensland Ltd.'s (BoQ) earnings should benefit from a shift to higher-margin business lending, ongoing investment in technology, and a simplification program. Our base case assumes that the bank will restore its earnings to levels broadly in line with similarly rated Australian regional banks by 2026. BoQ today reported cash earnings of A$343 million for fiscal 2024 (ended Aug. 31, 2024), down 24% on the prior year. Ongoing competition, margin pressure, and restructuring costs were the primary drivers of the decline. Any delay or failure to execute on the technology upgrade and simplification program could pose downside risks to our rating on BoQ (A-/Negative/A-2). The bank is targeting cost reductions and improvements in
