Commerzbank Reports Record Earnings, Announces Share Buyback
Commerzbank AG has announced a share buyback of up to €400 million and reported record earnings for 2024. The move comes as the German lender seeks to deter an unsolicited takeover approach by UniCredit SpA.
Net income rose 20% to €2.68 billion last year, exceeding analyst expectations of €2.47 billion. The news pushed Commerzbank shares up 2.3% to their highest level since August 2011, and they have gained nearly 20% year-to-date.
Commerzbank has maintained its intention to remain independent and has described UniCredit's potential takeover approach as hostile. The lender aims to strengthen its position by increasing its share price through a compelling standalone strategy.
Additionally, the company plans to propose a dividend of €0.65 per share for 2024, bringing its capital returns to €1.73 billion or 71% of profit after AT1 coupon deductions.
"We have exceeded our capital return promise to our shareholders," said CEO Bettina Orlopp in a statement.