Investor Presentaiton

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks Introduction There are a number of factors, both specific to BOQ and of a general nature, which may affect the future operating and financial performance of BOQ, its investment returns and the value of its shares. Many of the circumstances giving rise to these risks are beyond the control of BOQ. This section describes certain specific areas that are believed to be the major risks associated with an investment in BOQ. Each of the risks described below could, if they eventuate, have a material adverse effect on BOQ's operating and financial performance. You should note that the risks in this section are not exhaustive of the risks faced by a potential investor in BOQ. You should consider carefully the risks described in this section, as well as other information in this presentation, and consult your financial or other professional adviser before making an investment decision. General risks Changes in economic conditions: The financial performance of BOQ could be affected by changes in economic conditions in Australia and overseas. Such changes include: changes in economic growth, unemployment levels and consumer confidence which may lead to a general fall in the demand for BOQ's products and services; changes in underlying cost structures for labour and service charges; changes in fiscal and monetary policy, including inflation and interest rates, which may impact the profitability of BOQ or a general fall in the demand for BOQ's products and services; declines in aggregate investment and economic output in Australia or in key offshore regions; national or international political and economic instability or the instability of national or international financial markets including as a result of terrorist acts or war; changes in asset values, particularly commercial and residential real estate. The dislocation in credit and capital markets after the Lehman Brothers collapse and the onset of the global financial crisis in 2008 significantly impacted global economic activity including the Australian economy. This has led to subdued credit growth in Australia and impacted values of commercial and residential real estate in some parts of Australia. The Australian economy has performed well in some industry sectors but has slowed in other sectors. A further downturn in sectors of the Australian economy or in the Australian economy generally or slowing of the stronger sectors of the economy may lead to a lower demand for BOQ's products and services, or adversely affect the performance of BOQ's asset portfolio, and therefore could adversely impact BOQ's financial performance and position. Although BOQ will have in place a number of strategies to minimise the exposure to economic risk and will engage in prudent management practices to minimise its exposure to risk in the future, such factors may nonetheless have an adverse impact on BOQ's financial performance and position. Share price risk: There are general risks associated with an investment in the share market. As such, the value of New Shares may rise above or fall below the Offer Price, depending on the financial position and operating performance of BOQ. Further, broader market factors affecting the price of BOQ shares are unpredictable and may be unrelated or disproportionate to the financial or operating performance of BOQ. Such factors may include the economic conditions in Australia and overseas, investor sentiment in the local and international stock markets, consumer sentiment, changes in fiscal, monetary, regulatory and other government policies, national and international political and economic instability or the instability of national and international financial markets, interest and inflation rates and foreign exchange rates. Volatility in global credit markets could negatively impact the value of the New Shares. Changes in Government Policy: BOQ may be affected by changes in general government policy or legislation applying to companies or to banks and the financial services sector specifically. Some specific regulatory and policy issues are referred to below. 31 IT'S POSSIBLE to LOVE A BANK BOQ

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