Regional bank hopes to offload portfolio by February 2026 under plans to simplify business operations
Bank of Queensland (BOQ) has received bids for its $3.8 billion equipment finance portfolio, according to a report by The Australian.
BOQ announced that it is exploring a whole-of-loan sales process of this portfolio in an August trading update.
“This proposed transaction is aimed at enhancing capital flexibility, improving ROE (return of equity) and supporting scalable customer growth, through an off-balance sheet forward flow origination and servicing arrangement,” the regional lender said at the time.
An agreement would generate capital light earnings for BOQ, while continuing to provide customers, particularly small to medium (SME) customers, with a differentiated experience built on deep industry experience and capability,” it added.
The Australian reported that “logical” bidders include private equity heavyweights Apollo Global Management, Cerberus Capital Management and Blackstone.
BOQ hopes to complete the sale of its equipment finance portfolio during the first half of its 2026 financial year (which ends on 28 February 2026).
It forms part of managing director chief executive Patrick Allaway (pictured)’s strategy to simplify the business.
Earlier this month, Allaway told shareholders: When we met this time last year, we said that we expected to see benefits of our transformation to a simpler specialist bank, starting to emerge in 2025.
I am pleased to report that while we are on a continuous improvement journey, with more to do, we made strong progress in 2025: We are a stronger bank both financially and operationally. We simplified our operations and distribution channels.
“The digital bank is now largely built, with 44% of our retail customers enjoying an improved banking experience on the new platform.”
BOQ’s cash earnings were up 12% in its 2025 financial year, with a 70-basis-point uplift in its ROE.
The bank has pivoted away from the broker channel since its acquisition of ME Bank in 2021, which effectively became parent company BOQ Group’s broker brand.
In August 2024, BOQ Group paused the acquisition of new BOQ home loans through the broker channel to refocus its efforts on direct and digital mortgage lending. The pause is still in effect.
BOQ chose not to comment but will update the market when appropriate.
