"We're compliant,but we're now going through and saying well how can we remain compliant,but do it in a way that's much more efficient,and easier for the customer,"Mr Rose said.
He also nominated its digital platforms and its ability to attract owner managers in an environment of"regulatory uncertainty"as areas where it faced challenges.
BoQ's first-half cash profit fell 8 per cent to $167 million,as it had warned in February. Profit margins were down,its cost-to-income ratio was up,and retail banking profits were down 12 per cent,to $66 million.
Bell Potter analyst TS Lim said the retail bank was a"core business"for BoQ,and the commentary flagging problems in this area suggested conditions would remain"hard"for the lender. Regional lenders are generally more exposed to weakness in retail banking than the big four,which also have institutional businesses.
"At least the big banks have diversity in terms of revenue,and also the big banks have scale,"Mr Lim said.