Commerzbank announces share buyback and record earnings from last year

ADVERTISEMENT

The German lender Commerzbank will buy back shares worth as much as €400 million, according to its earnings statement released on Friday.

The bank noted that regulatory approvals had been secured, adding that the buyback would be completed by the Annual General Meeting in mid-May this year.

Earnings for 2024 came in at €2.68 billion, Commerzbank confirmed in the same press release – an increase of about 20% compared to 2023.

Revenues rose by 6% on the year to €11.11bn, boosted by commission income and interest returns.

Commerzbank also announced a dividend of €0.65 per share, up from €0.35.

This means the bank will have paid out €3.1bn to shareholders in the period from 2022 to 2024.

“We have exceeded our capital return promise to our shareholders,” said Commerzbank CEO Bettina Orlopp.

“By consistently managing costs and focusing on growth initiatives, we were able to significantly increase the net result for the past financial year…Commerzbank is and remains an attractive investment,” she added.

Orlopp is currently defending Commerzbank against a hostile takeover from UniCredit.

By highlighting the bank’s value as a standalone entity, she hopes to persuade investors that a takeover is unwise.

Under the direction of Andrea Orcel, the Italian lender UniCredit raised its stake in Commerzbank to 28% in December.

A few months earlier, the bank gave a similar announcement – first disclosing in September that it had acquired a 9% stake.

UniCredit had accumulated the initial portion through derivatives, a method that did not require full disclosure.

Politicians in Berlin subsequently accused UniCredit of being deceptive about its holdings.

Commerzbank’s Orlopp will present an updated strategy to the German bank’s board of managing directors on 13 February.