CBA Declares Fully Franked AUD 1.10 Dividend on PERLS XIII Notes for Q4 2025
Commonwealth Bank of Australia announces a fully franked quarterly dividend of AUD 1.1047 per PERLS XIII capital note, payable mid-December 2025.
- Dividend of AUD 1.1047 per PERLS XIII capital note
- Fully franked ordinary distribution for quarter ending 15 December 2025
- Ex-date 4 December, payment date 15 December 2025
- Total annualised distribution rate of 4.43% based on 3-month BBSW plus margin
- Distribution subject to bank’s discretion under PERLS XIII terms
Dividend Announcement Overview
Commonwealth Bank of Australia (CBA) has confirmed a fully franked ordinary dividend distribution of AUD 1.1047 per security for its PERLS XIII capital notes (ASX code, CBAPJ). This payment relates to the quarter ending 15 December 2025 and will be paid on 15 December 2025, with the ex-dividend date set for 4 December 2025.
Understanding the Distribution Rate
The total annualised distribution rate for this period stands at 4.4311%, calculated by combining the 90-day bank bill swap rate (BBSW) with a margin of 2.75%, then adjusting for the 30% corporate tax rate. This reflects the hybrid nature of the PERLS XIII notes, which blend fixed and floating rate components tied to market benchmarks.
Fully Franked Dividend Implications
The dividend is fully franked, meaning it carries a 30% tax credit for Australian investors, enhancing its after-tax yield. This is a notable benefit for holders of these capital notes, as it reduces the effective tax burden on income received from the distribution.
Discretionary Nature of Payment
While the dividend is scheduled, the payment remains subject to the bank’s discretion under the PERLS XIII terms and conditions. This discretionary feature is common in hybrid securities, allowing the issuer to withhold distributions under certain financial or regulatory circumstances, which investors should keep in mind.
Looking Ahead
Distributions will be paid via electronic transfer, and no additional approvals are required before the payment date. Investors should monitor future announcements for any changes in distribution policy or market conditions that might affect subsequent payments.
Bottom Line?
As CBA maintains its steady dividend on PERLS XIII notes, investors will watch closely for any shifts in distribution discretion amid evolving market conditions.
Questions in the middle?
- Will CBA maintain the current distribution margin on PERLS XIII in future quarters?
- How might changes in the 90-day BBSW rate impact upcoming dividend payments?
- What conditions could trigger CBA to exercise its discretion to withhold distributions?
