Bank of Queensland : APRA Basel III Pillar 3

For personal use only

APRA BASEL III PILLAR 3

Monday, 31 January 2022 (Brisbane): Bank of Queensland Limited (BOQ) today released its quarterly APRA Basel III Pillar 3 report relating to the period ending 30 November 2021.

ENDS

Authorised for release by: The Disclosure Committee, Bank of Queensland Limited

For personal use only

APRA BASEL III PILLAR 3 DISCLOSURES

Quarter ended 30 November 2021

BANK OF QUEENSLAND LIMITED, BASEL III PILLAR 3 DISCLOSURES

For the Quarter Ended 30 November 2021

Introduction

Bank of Queensland (Bank or BOQ) is an Authorised Deposit-taking Institution (ADI) regulated by the Australian Prudential Regulation Authority only(APRA) under the authority of the Banking Act 1959.

This report has been prepared by BOQ to meet its disclosure requirements set out in APRA's prudential standard APS 330 'Public Disclosure' (APS 330). It presents information on the Bank's capital adequacy, credit risk, securitisation exposures and liquidity coverage ratio.

In addition to this report, the Bank's main features of capital instruments are updated on an ongoing basis and are available at the Regulatory Disclosures section of the Bank's website at the following address: https://www.boq.com.au/regulatory_disclosures.

Key points

The Bank's capital management strategy 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 capital management plan is updated annually and submitted to the

useBoard for approval. The approval process is designed to ensure the plan is consistent with the overall business plan and for managing capital levels on an ongoing basis.

Capital Ratios

The Board has implemented interim targets until the finalisation of APRA's new capital framework, these are: Common Equity Tier 1 Capital Ratio greater than 9.5%; and Total Capital Ratio greater than 13.0%.

As at 30 November 2021, BOQ's capital ratios, including the consolidation of ME Bank acquired on 1 July 2021, are as follows:

• Common Equity Tier 1 Capital Ratio was 9.5% (9.8% as at 31 August 2021); and

personal• Total Capital Ratio was 13.1% (12.6% as at 31 August 2021). Capital Initiatives

The Bank raised AUD 400 million through the issue of subordinated debt in November 2021.

CONTENTS

1. Capital Structure

2. Capital Adequacy

3. Credit Risk

4. Securitisation Exposures

5. Liquidity Coverage Ratio

For

PAGE

3

4

5

7

8

2

Bank of Queensland Limited and its Controlled Entities

ABN 32 009 656 740 AFSL No. 244616

BANK OF QUEENSLAND LIMITED, BASEL III PILLAR 3 DISCLOSURES

For the Quarter Ended 30 November 2021

1. Capital Structure

only
	November 21	August 21
		$m	$m
	COMMON EQUITY TIER 1 CAPITAL
	Paid-up ordinary share capital	5,210	5,213
	Reserves	331	346
	Retained earnings, including current year earnings	370	277
	Total Common Equity Tier 1 Capital	5,911	5,836
use
	REGULATORY ADJUSTMENTS
	Deferred expenditure	(324)	(311)
	Goodwill and intangibles	(1,214)	(1,180)
	Other deductions	(92)	(11)
	Total Regulatory Adjustments	(1,630)	(1,502)
personalFor
Net Common Equity Tier 1 Capital	4,281	4,334
Additional Tier 1 Capital	610	610
	Total Tier 1 Capital	4,891	4,944
	TIER 2 CAPITAL
	Tier 2 Capital (1)	836	450
	General Reserve for Credit Losses	171	178
	Net Tier 2 Capital	1,007	628
	Total Capital Base	5,898	5,572
	Notes:
	(1) Tier 2 capital $400m was raised in November 2021 through the issue of subordinated notes.

3

Bank of Queensland Limited and its Controlled Entities

ABN 32 009 656 740 AFSL No. 244616

BANK OF QUEENSLAND LIMITED, BASEL III PILLAR 3 DISCLOSURES

For the Quarter Ended 30 November 2021

2. Capital Adequacy

only
	November 21	August 21
		Risk Weighted Assets	$m	$m
		SUBJECT TO THE STANDARDISED APPROACH
		Government	-	-
		Bank	692	774
		Residential mortgages	22,100	21,774
		Other retail (1)	16,752	16,302
	Other	289	344
use	90	90
	Corporate
	Total On-Balance Sheet Assets and Off-Balance Sheet Exposures	39,923	39,284
	Securitisation Exposures	78	80
	Market Risk Exposures	203	142
	Operational Risk Exposures	4,723	4,723
personalFor	Total Risk Weighted Assets	44,927	44,229
Capital Ratios	%	%
		Level 2 Total Capital Ratio	13.1	12.6
		Level 2 Common Equity Tier 1 Capital Ratio	9.5	9.8
	Level 2 Net Tier 1 Capital Ratio	10.9	11.2

N tes:

(1) Includes commercial lending and leasing.

4

Bank of Queensland Limited and its Controlled Entities

ABN 32 009 656 740 AFSL No. 244616