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5 Financial impact ▸ Total purchase price of $40m, including ~$30m in BOQ shares (1) Ongoing royalty for use of Virgin Money brand VMA currently loss-making given still in start-up phase: Continuing existing customer acquisition and growth profile would deliver a positive and fast growing earnings profile during the second full year of ownership No material impact to BOQ's FY13 Cash NPAT ▸ Existing business profile and share issue will result in EPS dilution of 1-2% in the next financial year - becomes EPS accretive during the second full year of ownership Growth plans in BOQ manufactured banking product distribution offer potentially material upside ▸ Common equity tier 1 ratio to be maintained at sector leading levels, with minimal reduction of ~12bps (2) at completion (1) After the payout of VMA obligations, ~$30m in shares will be issued to a subsidiary of the Virgin Group soon after completion as part of the acquisition consideration. The final amount is subject to post-completion adjustments. The number of shares issued will be based upon the volume weighted average price of BOQ in the 30 trading days prior to the date of the agreement. (2) The present value of the minimum on-going royalty is incorporated in upfront capital impact. Virgin money Bank of Queensland Limited ABN 32 009 656 740 BOQ Your own personal bank

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