Bank of Queensland’s impaired residential mortgages grew 62 per cent in the three months to May, the bank reported in its latest Pillar 3 disclosure.

BOQ had A$33.2 billion of residential mortgages on its books at the end of May – up from $32.3 billion in February.

The value of impaired residential mortgages grew from $116 million to $188 million over the same period.

The value of “other retail” impaired assets was stable, falling from $113 million to $111 million over the period.

BOQ has been a chronic laggard in the home loan market but in the six months to February it grew ahead of system for the first time in years. It may be paying a price for its aggressive push to grow share.

Or it may be that a lot of borrowers have come off COVID loan deferrals in poorer shape than the banks have been letting on.

On the capital side, the bank’s common equity tier 1 capital ratio rose from 10 per cent at the end of February to 14.1 per cent at the end of May, following a successful capital raising in March.

The CET1 capital target range if between 9 and 9.5 per cent.

Average liquidity coverage ratio over the May quarter was 158 per cent.