CBA’s Multi-Currency Dividend Plan Raises Questions on Currency Risk and DRP Uptake

Dividend Update and Payment Details

Commonwealth Bank of Australia (CBA) has provided an update to its interim dividend announcement for the six months ending 31 December 2025. The bank confirmed an ordinary dividend of AUD 2.35 per fully paid ordinary share, fully franked at the corporate tax rate of 30%. This dividend will be paid on 30 March 2026, with the record date set at 19 February 2026 and the ex-dividend date on 18 February 2026.

Importantly, no external approvals are required ahead of the dividend payment, streamlining the process for shareholders expecting income from their holdings.

Multi-Currency Dividend Payments

CBA has clarified its currency arrangements, offering shareholders flexibility in how they receive their dividend payments. Shareholders registered in Australia, New Zealand, and the United Kingdom will receive dividends in their local currency; Australian Dollar (AUD), New Zealand Dollar (NZD), or Pound Sterling (GBP); provided they have nominated a valid bank account by the record date.

For other shareholders, regardless of domicile, the option exists to receive payments in their preferred currency by setting up an account with OFX Group Limited. This arrangement allows for payments in AUD, NZD, or GBP, subject to the nominated bank account being located in the country of the chosen currency. Shareholders without a valid nominated bank account who are not participating in the Dividend Reinvestment Plan (DRP) will have their dividends paid in AUD by default.

Dividend Reinvestment Plan Details

The DRP remains an attractive option for investors wishing to reinvest their dividends into additional shares. For this interim dividend, the DRP is offered with no discount on the reinvestment price, which will be calculated as the average daily volume weighted average price of CBA shares traded on the ASX or Cboe over the 20 trading days from 23 February to 20 March 2026.

Participation in the DRP currently stands at approximately 13.5% of CBA’s ordinary fully paid shares on issue. The plan is open to shareholders in multiple jurisdictions, including Australia, New Zealand, the UK, Canada, and several others, though international participants should review eligibility criteria carefully.

Tax and Further Information

The dividend is fully franked, reflecting CBA’s strong earnings and tax position. Shareholders will also note the presence of a New Zealand imputation credit of NZD 0.15 per share. For those seeking to update bank details or currency preferences, the share registry MUFG Corporate Markets provides multiple channels for communication, including email and an online investor centre.

This update supersedes the previous announcement made on 11 February 2026, providing clearer guidance on currency options and DRP participation ahead of the payment date.