The Bank of Queensland (BOQ) is facing financial challenges and is undergoing a major restructuring initiative.

Revised ROE Target

The bank has revised its return on equity (ROE) target for fiscal year 2026 due to margin compression and rising costs.

Workforce Reduction

BOQ plans to reduce its workforce by 13% by December 2024 as part of its strategy to increase cost savings.

Conversion of Owner Managed Branches

The bank will incur significant costs associated with converting Owner Managed Branches (OMB) to corporate branches.

Risks and Benefits

While the restructuring is expected to yield a cash net profit after tax (NPAT) benefit from fiscal year 2026 onwards, there are risks involved.

Investment Outlook

The current investment outlook for BOQ is cautious, with concerns about its low return on equity and the challenges it faces.

Share Price

The bank's share price appears inflated given the current financial landscape.

Risks to Long-Term Viability

BOQ's restructuring efforts come with inherent risks that could impact its long-term viability.