Commonwealth Bank Sets 4.59% Annualised Dividend Rate for PERLS XV Capital Notes

Dividend Announcement Overview

Commonwealth Bank of Australia (CBA) has confirmed a fully franked ordinary dividend of AUD 1.1581 per security for its PERLS XV capital notes (ASX code, CBAPL). This distribution covers the quarter ending 15 September 2025 and will be paid on 15 September, with an ex-dividend date of 4 September and a record date of 5 September 2025.

Details Behind the Distribution Rate

The dividend rate for this period is calculated at an annualised 4.5947%, derived from the 90-day bank bill swap rate plus a margin of 2.85%, adjusted for the 30% corporate tax rate. This methodology aligns with the terms set out in the PERLS XV capital notes, which are perpetual, non-cumulative, and redeemable instruments issued by CBA.

Franking and Payment Mechanics

The dividend is fully franked, meaning investors receive a credit for the tax already paid by the bank on this income, enhancing its after-tax value. Payments will be made electronically, ensuring a smooth and timely distribution to noteholders. Importantly, no external approvals or court orders are required for this dividend to proceed, underscoring the routine nature of this scheduled payment.

Discretionary Nature of Future Distributions

While this dividend is scheduled and expected to be paid in full, the terms of the PERLS XV notes grant CBA discretion over future distributions. This means the bank may choose to defer payments under certain conditions, a factor investors should monitor closely as it introduces an element of uncertainty beyond this quarter.

Investor Considerations

For fixed income investors, the announcement confirms a steady income stream from these capital notes, supported by a transparent calculation method and full franking. However, the discretionary clause embedded in the PERLS XV terms means that while the current dividend is assured, future payments could be influenced by the bank’s financial position and regulatory environment.