Commerzbank plans to buy back shares worth up to €400 million, according to its earnings report released on Friday. The German lender confirmed it had received all necessary regulatory approvals for the buyback.
The repurchase program will conclude before the Annual General Meeting in mid-May. This move comes as Commerzbank faces a hostile takeover attempt by Italy’s UniCredit.
Strong Financial Performance in 2024
Commerzbank reported €2.68 billion in net earnings for 2024, reflecting a 20% increase compared to 2023. Revenues rose by 6%, reaching €11.11 billion, driven by higher interest returns and commission income.
The bank also announced a dividend increase to €0.65 per share, up from €0.35. This means Commerzbank will have distributed €3.1 billion to shareholders between 2022 and 2024.
“We have exceeded our capital return promise to our shareholders,” said CEO Bettina Orlopp. She credited strict cost control and growth-focused initiatives for the bank’s improved net result. “Commerzbank remains an attractive investment,” she added.
UniCredit Expands Stake Amid Takeover Battle
UniCredit has aggressively increased its stake in Commerzbank, raising its holdings to 28% in December. The Italian lender, led by Andrea Orcel, first announced its 9% stake in September.
UniCredit used derivative transactions to accumulate shares, avoiding immediate disclosure. This approach drew criticism from Berlin politicians, who accused UniCredit of lacking transparency.
Orlopp is pushing back against the takeover attempt, emphasizing Commerzbank’s strength as an independent entity. On February 13, she will present an updated strategy to the bank’s board of managing directors.
