Commonwealth Bank - Report to Shareholders 2003 - Notes to the Financial Statements
 

Notes to the Financial Statements

For the year ended 30 June 2003

NOTE 2 Dividends

Notes to the Financial Statements
  2003
$M
2002
$M

Ordinary Shares    
Interim ordinary dividend (fully franked)    
(2003: 69 cents, 2002: 68 cents, 2001: 61 cents)    
Provision for interim ordinary dividend – cash component only 699 693
Provision for interim ordinary dividend – dividend reinvestment plan 166 159
Declared final ordinary dividend (fully franked)    
(2003: nil provided, 2002: 82 cents, 2001: 75 cents)    
Provision for final ordinary dividend – cash component only 832
Provision for final ordinary dividend – dividend reinvestment plan 195
     
Preference Shares    
Preference dividends paid (fully franked)    
(2003: 1,019 cents, 2002: 970 cents, 2001: 261 cents) 28 26
Provision for preference dividend 8 8

Dividends provided for or paid 901 1,913

Appropriations to Dividend Reinvestment Plan Reserve    
Interim ordinary dividend
Final ordinary dividend

Dividends appropriated to Dividend Reinvestment Plan Reserve

Total Dividends Provided for, Reserved or Paid 901 1,913

     
Other provision carried 4 5
Dividends proposed and not recognised as a liability (fully franked)
(2003: 85 cents, 2002: nil)
1,066

Dividend Franking Account

After fully franking the final dividend to be paid for the year ended 30 June 2003 the amount of credits available as at 30 June 2003 to frank dividends for subsequent financial years is $417 million. This figure is based on the combined franking accounts of the Bank at 30 June 2003, which have been adjusted for franking credits that will arise from the payment of income tax payable on profits for the year ended 30 June 2003, franking debits that will arise from the payment of dividends proposed for the year and franking credits that the Bank may be prevented from distributing in subsequent financial periods. The Bank expects that future tax payments will generate sufficient franking credits for the Bank to be able to continue to fully frank future dividend payments. Dividend payments on or after 1 July 2003 will be franked at the 30% tax rate. These calculations have been based on the taxation law as at 30 June 2003.