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# BOQ is shrinking mortgages to grow its business bank
- URL: https://www.benchmarkanalytics.com.au/boq-is-shrinking-mortgages-to-grow-its-business-bank/
- Published: 2026-10-02T01:30:56.000Z
- Updated: 2026-10-02T01:30:55.000Z
- Author: Nick Hossack
- Tags: Bank of Queensland, BOQ, APRA, Business Banking, Housing Lending, Bank Competition, #banking

Bank of Queensland is deliberately changing the composition of its balance sheet — shrinking its mortgage book while putting more capital into business lending.

The strategy is now clearly visible in APRA’s monthly banking statistics.

In August 2026, BOQ had $50.7 billion of housing loans, down 7.6 per cent over the previous year. Owner-occupied mortgages fell 8.4 per cent to $35.1 billion, while investor housing lending declined 5.6 per cent to $15.6 billion.

That is occurring while the Australian mortgage market continues to expand. System-wide owner-occupied lending increased 5.1 per cent over the same period and investor lending grew 7.5 per cent.

BOQ’s business loan book is moving in the opposite direction.

Loans to non-financial businesses increased 11.6 per cent over the year to $15.8 billion, slightly ahead of system business credit growth of 10.3 per cent.

This is deliberate.

BOQ has said it is reallocating capital away from lower-returning housing lending towards higher-returning business lending. In FY25, the bank reported commercial lending growth concentrated in healthcare, agribusiness and well-secured commercial property.

The change becomes clearer over two years. Since August 2024, BOQ’s housing loan book has fallen from $58.8 billion to $50.7 billion — a decline of almost $8.1 billion. Business lending has increased from $12.8 billion to $15.8 billion.

Business lending consequently represents 23.8 per cent of BOQ’s combined housing and business loan book, up from 17.9 per cent two years ago.

BOQ’s total resident assets have also fallen 7.6 per cent over the past year to $108.5 billion.

That makes the important distinction: BOQ is not currently pursuing balance-sheet growth at any price. It is changing what sits on the balance sheet.

The August APRA numbers provide an unusually timely snapshot: BOQ’s financial year ended on 31 August, with its full-year results due on 15 October.

| BANK OF QUEENSLAND \| AUGUST 2026                                                                                                                                                          |
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| BOQ is changing what sits on its balance sheet                                                                                                                                             |
| Housing lending is being run down while BOQ reallocates capital towards its growing business bank.                                                                                         |
| Housing loans $50.7bn −7.6% year-on-year Business loans $15.8bn +11.6% year-on-year                                                                                                        |
| Lending category Aug 2026 BOQ growth System Owner-occupied housing $35.1bn −8.4% +5.1% Investor housing $15.6bn −5.6% +7.5% Business lending $15.8bn +11.6% +10.3%                         |
| The two-year balance-sheet shift                                                                                                                                                           |
| Housing loans **$58.8bn → $50.7bn** Business loans **$12.8bn → $15.8bn** Business share of housing + business lending **17.9% → 23.8%**                                                    |
| **The strategy:**BOQ has explicitly said it is running off lower-returning home lending and reallocating capital towards higher-returning business lending.                                |
| Source: APRA Monthly Authorised Deposit-taking Institution Statistics, August 2026\. Benchmark Analytics calculations. Housing loans comprise owner-occupied and investor housing lending. |