BOQ’s Distribution Hinges on Discretion Amid Stable Capital Notes Yield
Bank of Queensland Limited announces a fully franked quarterly distribution of AUD 1.337 per Capital Note 3 security, payable in November 2025. The payment reflects a total annualised rate of 5.19%, based on the 3-month BBSW plus margin, adjusted for franking credits.
- AUD 1.337 fully franked distribution declared for Capital Notes 3
- Distribution payable on 17 November 2025 with ex-date 30 October
- Total annualised distribution rate of 5.1916% based on BBSW plus margin
- No external approvals required prior to payment
- Payment subject to BOQ’s discretion and capital notes terms
Distribution Announcement Overview
Bank of Queensland Limited (BOQ) has confirmed an ordinary distribution of AUD 1.337 per security for its Capital Notes 3 (ASX, BOQPF). This payment is scheduled for 17 November 2025, with an ex-dividend date of 30 October and a record date of 31 October. The distribution covers the quarter ending 16 November 2025 and is fully franked, reflecting the company’s ongoing commitment to delivering shareholder value through tax-effective income streams.
Calculation and Rate Details
The total annualised distribution rate stands at 5.1916%, derived from the 3-month Bank Bill Swap Rate (BBSW) plus a margin of 3.80%, adjusted for franking credits at the prevailing corporate tax rate of 30%. This calculation methodology aligns with the terms set out in the Capital Notes 2 Prospectus dated November 2020, ensuring transparency and consistency for investors.
Regulatory and Payment Conditions
Importantly, BOQ has confirmed that no external approvals; such as security holder, court, or regulatory consents; are required before the distribution payment. However, the payment remains subject to the bank’s absolute discretion and the satisfaction of specific payment conditions outlined in the Capital Notes 2 Prospectus. This introduces a degree of conditionality, typical for hybrid securities, which investors should monitor closely.
Implications for Investors
For investors, the fully franked nature of the distribution enhances after-tax returns, particularly for Australian resident shareholders eligible to utilise franking credits. The steady quarterly payment underscores BOQ’s stable capital management approach amid a competitive banking environment. However, the discretionary nature of the payment means investors should remain attentive to BOQ’s financial health and regulatory environment ahead of the payment date.
Looking Ahead
As the payment date approaches, market participants will be watching for any updates from BOQ regarding the satisfaction of payment conditions. The distribution announcement reinforces the bank’s ongoing strategy to balance capital efficiency with shareholder returns, a dynamic that will continue to shape investor sentiment in the lead-up to the next reporting periods.
Bottom Line?
BOQ’s fully franked distribution signals steady income for investors but hinges on discretionary payment conditions.
Questions in the middle?
- Will BOQ meet all payment conditions to ensure the November distribution proceeds as planned?
- How might changes in the BBSW or regulatory environment affect future distribution rates?
- What impact could broader economic conditions have on BOQ’s capital notes and dividend policy?
