NAB Confirms Fully Franked AUD 0.85 Dividend with Multi-Currency Options

NAB’s Dividend Update

National Australia Bank Limited (NAB) has issued an update to its previously announced dividend notification, reaffirming an ordinary dividend of AUD 0.85 per share for the six months ending 30 September 2025. This dividend is fully franked, reflecting the bank’s ongoing commitment to returning value to shareholders while maintaining a strong franking credit position.

The dividend will be paid on 12 December 2025, with a record date set for 12 November 2025 and an ex-dividend date of 11 November 2025. NAB’s update primarily clarifies currency arrangements and exchange rates for foreign currency payments, ensuring transparency for international investors.

Multi-Currency Dividend Payments

In a move that underscores its global shareholder base, NAB will pay dividends not only in Australian dollars but also in British pounds (GBP), New Zealand dollars (NZD), and US dollars (USD). The exchange rates used for these foreign currency payments were fixed at prevailing market rates as of 14 November 2025. Shareholders can choose their preferred currency, subject to default arrangements based on their registered address or banking instructions.

This multi-currency approach reflects NAB’s recognition of its diverse investor base and aims to simplify dividend receipt for shareholders outside Australia. Notably, the bank has discontinued issuing AUD cheques to shareholders without a nominated bank account, emphasizing electronic payments.

Dividend Reinvestment and Bonus Security Plans

NAB continues to offer a Dividend Reinvestment Plan (DRP) and a Bonus Security Plan (BSP) for this dividend. Both plans are fully applicable, with the DRP allowing shareholders to reinvest dividends into additional shares without a discount, and the BSP involving new share issues. The DRP is expected to be fully neutralised through on-market purchases, mitigating dilution concerns.

Participation in these plans is subject to certain conditions, including eligibility restrictions for shareholders outside Australia who must reside in permitted jurisdictions such as France, Hong Kong, Ireland, Japan, Malaysia, New Zealand, Singapore, or the United Kingdom. The maximum participation limit for the DRP is set at 5 million shares per participant.

Implications for Shareholders

For investors, the fully franked dividend provides a tax-efficient income stream, particularly attractive in the current low-interest-rate environment. The flexibility to receive dividends in multiple currencies may also enhance the appeal for international shareholders, potentially broadening NAB’s investor base.

While the announcement does not provide forward-looking dividend guidance, the clarity on currency arrangements and shareholder participation plans helps set expectations for the upcoming payment cycle. Market participants will be watching closely for any shifts in NAB’s capital management strategy in future updates.