2023-09-28 17:53:41
The Frankfurt bank expects to raise its net profitability ratio on equity to “more than 11%” in 2027. Total dividends would rise to 3 billion euros.
The second German bank Commerzbank announced Thursday evening that it wanted to involve its shareholders more in its future profits, showing its confidence in the lasting recovery of the establishment following years of lean times.
The Frankfurt bank expects to raise its net profitability ratio on equity to “more than 11%” in 2027, it announced in a press release.
Along the way, between 2022 and 2024, Commerzbank wishes to distribute a total of 3 billion euros to its shareholders in the form of dividends and share buybacks. To achieve this, the profit distribution rate for 2024 will be “at least 70%”, the press release continues.
This distribution rate will then be “greater than 50%” for the years 2025 to 2027, depending on certain financial conditions.
These decisions must still receive the green light from the regulator within the European Central Bank (ECB) and the State Financial Agency, Berlin being a 15% shareholder of the bank which it saved from bankruptcy during the great crisis of 2008.
The successful implementation of the bank’s digital transformation and the rise in interest rates have laid “the foundations for a further increase in Commerzbank’s profitability,” said Manfred Knof, CEO of Commerzbank, in this press release.
“This increases the possibility of sharing our success even more with our shareholders,” and reflects “confidence in the continued development of the bank,” he added.
After years marked by crises and restructuring, synonymous with freezing the dividend for shareholders, the group has clearly raised its head in 2022, at the cost in particular of the elimination of 9,000 positions since 2021 and the closure of hundreds of agencies .
The strategy for 2025 and beyond will be presented at the same time as the third quarter results on November 8.
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