Bank of Queensland announces $295M capital return
- Bank of Queensland announced a capital return package of approximately $295 million, consisting of a fully franked special dividend and an on-market share buy-back.
- The capital return is expected to reduce the bank's Common Equity Tier 1 ratio by approximately 78 basis points to a pro forma level of 11.01% as of May 31.
- The company stated that the distribution reflects its strong capital position and a commitment to delivering sustainable returns following the sale of its equipment finance portfolio.
Bank of Queensland (ASX: BOQ) announced a capital return of approximately $295 million, comprising a fully franked special dividend and an on-market share buy-back of ordinary shares.
The capital return follows the successful completion of the previously announced sale of the bank's equipment finance portfolio.
The Board has declared a fully franked special dividend of 15 cents per ordinary share, and BOQ intends to undertake an on-market share buyback of up to $196 million.
The bank reported a Common Equity Tier 1 ratio of 11.79% as at May 31, with the capital return expected to result in a pro-forma ratio of 11.01%.
Following the announcement, the Bank of Queensland share price was up at $6.75.
The special dividend has an ex-dividend date of Aug. 13, a record date of Aug. 14, and a payment date of Aug. 24.
The company also reported the successful completion of the migration of ME customers to its digital bank, finalising a multi-year transformation programme that transitioned approximately 350,000 customers from the legacy core.
