CBA offers discount on DRP shares

Ian Rogers
Commonwealth Bank yesterday said it will introduce a discount of 1.5 per cent on the purchase of new shares in the bank under the dividend reinvestment program that applies to the final dividend. The bank has not applied a discount to shares sold under the DRP before.

The bank will announce its full year profit on August 12 and pay the final dividend on October 1.

CBA said in its interim financial report in February 2009 that it expected investors to reinvest around $548 million worth of dividends in new shares. In the end the bank retained only $406 million in dividends as capital unde the DRP.