Overview of BOQ's APRA Basel III Pillar 3 report

Bank of Queensland Limited (BOQ) has released its quarterly APRA Basel III Pillar 3 report for the quarter ending 31 May 2024. The report provides detailed information on the bank's capital structure, capital adequacy, credit risk, securitisation exposures, and liquidity coverage ratio, in compliance with APRA's prudential standard APS 330 'Public Disclosure'.

Executive commentary on capital management and ratios

The Bank's capital management aims to ensure adequate capital levels are maintained to protect deposit holders. The Bank's capital is measured and managed in line with Prudential Standards issued by APRA. The Bank's Internal Capital Adequacy Assessment Process (ICAAP) provides the framework to ensure that the Bank is capitalised to meet internal capital targets and APRA's requirements. The ICAAP is reviewed regularly and submitted to the Board annually for approval. The Bank's capital position is monitored on a continuous basis and reported monthly to the Asset and Liability Committee and Board.

Summary of APRA Basel III Pillar 3 report and outlook

The APRA Basel III Pillar 3 report released by BOQ outlines the bank's capital ratios, including the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio, and Total Capital Ratio as at 31 May 2024. The report also highlights BOQ's approach to maintaining a minimum Liquidity Coverage Ratio (LCR) of 100 per cent, with the bank's average Level 2 LCR over the May 2024 quarter at 147%. BOQ's capital management strategy, adherence to APRA's prudential standards, and ongoing monitoring of capital position demonstrate the bank's commitment to safeguarding deposit holders and ensuring regulatory compliance. The outlook indicates BOQ's focus on maintaining capital levels within the new management target ranges and managing liquidity on a daily basis with a buffer above the regulatory minimum, in line with the bank's prescribed risk appetite and management ranges.