Jefferies cuts Bank of Queensland PT ahead of FY26 results

** Jefferies cuts price target on Bank of Queensland BOQ.AX to A$5.60 from A$5.68 and maintains "underperform" rating ahead of its FY26 result on October 15

** Brokerage expects FY26 cash earnings to fall 14% to A$329 million ($228.85 million) and pre-provision operating profit to decline 10% to A$526 million

** Says BOQ's strategy of prioritising margins over growth is driving housing market share losses and lower loan volumes

** Expects second-half NIM to rise 3 basis points to 1.70%, though competition may limit further upside

** Adds that it struggles to see BOQ materially improving its targeted metrics from current levels, with ROE expected at 6%-7% over FY27-FY29

** YTD, stock up 1.9% as of last close

($1 = 1.4376 Australian dollars)