Bank of Queensland : APRA Basel III Pillar 3

APRA BASEL III PILLAR 3

APRA BASEL III PILLAR 3

Wednesday, 14 October 2020, Brisbane: Bank of Queensland Limited (ASX: BOQ) today released its quarterly APRA Basel III Pillar 3 report relating to the period ending 31 August 2020.

Authorised for release by: The Board of Directors of Bank of Queensland Limited

For further information please call:

Media

Tracy Hicks, Head of Corporate Affairs 0439 540 960 [e-mail]

Analysts

Cherie Bell, General Manager Investor Relations 0488 756 126 [e-mail]

Bank of Queensland Limited ABN 32 009 656 740 (BOQ)

APRA BASEL III PILLAR 3 DISCLOSURES

Quarter ended 31 August 2020

BANK OF QUEENSLAND LIMITED, BASEL III PILLAR 3 DISCLOSURES

For the Quarter Ended 31 August 2020

14 October 2020

This report has been prepared by Bank of Queensland Limited (Bank or BOQ) to meet its disclosure requirements under the Australian Prudential Regulation Authority's (APRA) Prudential Standard APS 330: Public Disclosure. It has been prepared using 31 August 2020 data.

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 Board 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.

The Board has set the Common Equity Tier 1 Capital target range to be between 9.0% and 9.5% and the Total Capital range to be between 11.75% and 13.5%.

As at 31 August 2020:

• Common Equity Tier 1 Capital Ratio was 9.8% (9.8% as at 31 May 2020); and

• Total Capital Ratio was 12.7% (12.7% as at 31 May 2020).

CONTENTS	PAGE
Capital Structure	3
Table 1: Capital Disclosure Template	4
Reconciliation between the Consolidated Balance Sheet and the Regulatory Balance Sheet	8
Entities excluded from the Regulatory Scope of Consolidation	10
Table 2: Main Features of Capital Instruments	11
Table 3: Capital Adequacy	12
Table 4: Credit Risk	13
Table 5: Securitisation Exposures	15
Table 20: Liquidity Coverage Ratio	16
Table 21: Net Stable Funding Ratio	18

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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 31 August 2020

Capital Structure

	August 20	February 20
	$m	$m
COMMON EQUITY TIER 1 CAPITAL
Paid-up ordinary share capital	3,871	3,868
Reserves	1341	131
Retained earnings, including current year earnings	1631	149
Total Common Equity Tier 1 Capital	4,168	4,148
REGULATORY ADJUSTMENTS
Deferred expenditure	(187)	(187)
Goodwill and intangibles	(909)	(914)
Other deductions	17	41
Total Regulatory adjustments	(1,079)	(1,060)
Net Common Equity Tier 1 Capital	3,089	3,088
Additional Tier 1 Capital	350	500
Net Tier 1 capital	3,439	3,588
TIER 2 CAPITAL
Tier 2 Capital	350	350
General Reserve for Credit Losses	230	179
Net Tier 2 Capital	580	529
Total Capital Base	4,019	4,117

Notes:

(1) The profit reserve represents accumulated profits available for distribution as a dividend. Accumulated profits are recognised as reserves and not retained earnings for the period.

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Bank of Queensland Limited and its Controlled Entities

ABN 32 009 656 740 AFSL No. 244616