Investor Presentaiton

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks (cont) Reliance on external parties: BOQ's operations depend on performance by a number of external parties under contractual arrangements with BOQ. As at 10 April 2014, approximately 67% of BOQ's branches are Owner Managed. Non-performance of contractual obligations and poor operational performance of OMBS may have an adverse effect on BOQ's business and financial performance. In addition, BOQ outsources a number of operational services such as information technology and banking platforms, and offers a number of customer facing products issued by third parties such as ATMs, credit cards, general insurance products and wealth management services. Although BOQ has taken steps to protect it from the effects of defaults under these arrangements, such defaults may have an adverse effect on BOQ's business continuity and financial performance. Failure to comply with laws and regulation: BOQ is subject to substantial regulatory and legal oversight in Australia. The agencies with regulatory oversight of BOQ and its subsidiaries include, among others, APRA, the RBA, ACCC, ASX and ASIC. Failure to comply with legal and regulatory requirements may have a material adverse effect on BOQ and its reputation among customers and regulators and in the market. BOQ has compliance frameworks, policies and procedures in place to manage the risk of non-compliance. Changes in regulation and government policy: Changes to laws, regulations, policies or accounting standards, including changes in interpretation or implementation of laws, regulations, policies or accounting standards, could affect BOQ in substantial and unpredictable ways. These may include required levels, or the measurement, of bank liquidity and capital adequacy, limiting the types of financial services and products that can be offered, and/or reducing the fees which banks can charge on their financial services. In December 2013, the Commonwealth Government announced the terms of reference for a Financial System Inquiry. The Inquiry is charged with examining how the financial system could be positioned to best meet Australia's evolving needs and support Australia's economic growth. The outcomes of this inquiry and the Government's response to it may affect BOQ but it is too early to assess what those outcomes may be until the Inquiry panel reports in November 2014. Changes in technology: Technology plays an increasingly important role in the delivery of financial services to customers in a cost effective manner. BOQ's ability to compete effectively in the future will, in part, be driven by its ability to maintain an appropriate technology platform for the efficient delivery of its products and services. Industry competition: There is substantial competition for the provision of financial services in the markets in which BOQ operates. The effect of competitive market conditions may adversely impact the earnings and assets of BOQ. These competitive pressures may occur at other levels, such as the competition for acceptable wholesale funding discussed above. Risks to Bank of Queensland's growth strategy: Risks that relate to BOQ's growth strategy are interrelated and include risk of local market saturation, risks associated with geographical diversification, changes in wholesale funding markets and changes in general economic conditions. Risk of local market saturation: Despite the size of the Queensland market, BOQ faces the challenge of maintaining a high penetration rate in that market in order to achieve continued growth. In addition, BOQ will continue to be exposed to fluctuations in the Queensland economy in particular. Risk of geographical diversification: Through the mergers with Pioneer Permanent Building Society (North Queensland) and Home Building Society (Western Australia) in 2006 and 2007 and organic growth in other states, BOQ has expanded its geographical presence and distribution in Australia. The acquisition of Investec Bank (Australia) Limited will add to that geographic diversification. This brings challenges to BOQ's management and control systems as it becomes a more geographically diverse organisation. Funding for growth: Changes in wholesale funding markets may cause an inability to raise sufficient wholesale funds to fund BOQ's asset growth strategies (see Market Risk section above, which details BOQ's funding risks). Effect of economic conditions: General economic conditions may worsen which could stifle credit growth and restrict BOQ's ability to grow in line with its growth strategy (see Changes in economic conditions section above, which explains risks associated with general economic conditions). 34 IT'S POSSIBLE to LOVE A BANK BOQ

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