NAB Sets 2025 Interim Dividend at AUD 0.85 with DRP and BSP Prices Fixed
National Australia Bank has updated key details on its 2025 interim dividend, including dividend reinvestment and bonus security plans, setting clear terms for shareholders ahead of the July payment.
- Interim dividend of AUD 0.85 per share, fully franked
- Dividend and bonus security plan prices set at AUD 37.51 with no discount
- DRP securities not newly issued; BSP securities will be newly issued
- Participation limited to shareholders in permitted jurisdictions
- Dividend payable in multiple currencies with fixed exchange rates
NAB Updates Dividend Announcement
National Australia Bank Limited (NAB) has issued an update to its previous announcement concerning the 2025 interim ordinary dividend. The bank confirmed a fully franked dividend of AUD 0.85 per share, payable on 2 July 2025, relating to the financial period ending 31 March 2025. This update primarily clarifies the pricing and participation conditions for NAB’s Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP).
Dividend Reinvestment and Bonus Security Plans
The DRP and BSP prices have both been set at AUD 37.51 per share, calculated as the arithmetic average of the volume weighted average price of NAB shares traded on ASX and Cboe Australia over a 10-day period ending 30 May 2025. Notably, there is no discount applied to either plan. While DRP securities will not be newly issued, BSP securities will be newly issued and will rank equally with existing shares from the issue date.
Shareholders who do not elect to participate in these plans will receive their dividends in cash. The DRP participation limit is capped at 5 million NAB ordinary shares per participant, and both plans exclude shareholders outside permitted jurisdictions, which include France, Hong Kong, Ireland, Japan, Malaysia, New Zealand, Singapore, and the United Kingdom.
Currency and Payment Details
NAB offers dividend payments in multiple currencies; Australian Dollar (AUD), Pound Sterling (GBP), New Zealand Dollar (NZD), and US Dollar (USD); with exchange rates fixed as of 15 May 2025. Shareholders can choose their preferred currency, subject to default arrangements based on their registered address or banking instructions. Importantly, NAB has ceased issuing AUD cheques to shareholders who have not nominated a valid bank account, emphasizing direct credit payments.
Participation and Shareholder Engagement
The update reveals that participation in the DRP and BSP accounts for 8.3% of NAB’s issued capital, indicating a moderate level of shareholder engagement with these plans. NAB has provided multiple channels for shareholders to update their dividend payment preferences, including online, email, phone, and mail options, with deadlines aligned to the record date of 13 May 2025.
This announcement serves to provide clarity and transparency to NAB shareholders, ensuring they have the necessary information to make informed decisions about their dividend options and shareholding strategies ahead of the payment date.
Bottom Line?
As NAB finalizes its dividend arrangements, investors will watch closely how currency choices and plan participation influence shareholder returns.
Questions in the middle?
- Will NAB adjust dividend policies or DRP/BSP terms in response to market conditions later this year?
- How might currency fluctuations after the fixed exchange rate date affect foreign shareholders’ dividend income?
- What impact will the capped DRP participation have on NAB’s share liquidity and capital structure?
