{"id":882690,"date":"2026-10-15T02:42:10","date_gmt":"2026-10-15T02:42:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/882690\/"},"modified":"2026-10-15T02:42:10","modified_gmt":"2026-10-15T02:42:10","slug":"boq-mortgage-book-narrows-amid-digital-migration","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/882690\/","title":{"rendered":"BOQ mortgage book narrows amid digital migration"},"content":{"rendered":"

But the migration has cost BOQ volume. The decline has been building since the lender\u00a0paused broker originations onto its legacy BOQ platform in September 2024<\/a>, steering broker flow to ME Bank as part of a strategy to cut origination costs. Loans written through ME’s broker channel made up 43% of BOQ’s total home loan portfolio at February 2026, and brokers wrote 71% of new home loans in the first half of FY26.<\/p>\n

The payoff is meant to arrive in FY27. BOQ is now decommissioning ME Bank’s heritage technology environment and expects productivity benefits from that, and from its technology partnership with Capgemini<\/a>, next financial year. It also said housing application volumes and run-off improved in the second half (March to August 2026).<\/p>\n

Margin up, earnings down<\/p>\n

The smaller book has not hurt BOQ’s margin. Net interest margin rose six basis points to 1.7%, helped by funding optimisation and higher interest rates, though BOQ said competition in home and business lending partly offset the gain.<\/p>\n

Growth came from the business bank instead. Commercial lending rose 16%, or $2.1 billion, led by healthcare, agriculture and small-to-medium businesses. BOQ also sold $3.6 billion of equipment finance loans to Challenger under a new capital partnership, keeping the origination and servicing through a forward flow arrangement.<\/p>\n

That deal helped lift BOQ’s common equity tier 1 (CET1) capital ratio 70 basis points to 11.64%, above its 10.25\u201310.75% target range. Customer deposits fell $3.8 billion, or 6%, as funding needs shrank with the home loan book.<\/p>\n","protected":false},"excerpt":{"rendered":"But the migration has cost BOQ volume. The decline has been building since the lender\u00a0paused broker originations onto…\n","protected":false},"author":2,"featured_media":882691,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[223,370631,370630,88,370632],"class_list":["post-882690","post","type-post","status-publish","format-standard","has-post-thumbnail","category-books","tag-books","tag-boq","tag-boq-group","tag-entertainment","tag-me-bank"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/882690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=882690"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/882690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/882691"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=882690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=882690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=882690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}