Commerzbank has announced plans to buy back shares worth up to €400 million, according to its latest earnings report. The German bank confirmed that it had received all necessary regulatory approvals for the repurchase.
The buyback process will conclude by the Annual General Meeting in mid-May 2024. This move comes at a critical moment, as Commerzbank is actively resisting a takeover attempt by Italy’s UniCredit.
By strengthening shareholder returns, the bank aims to demonstrate financial stability and reinforce its position as an independent institution.
Strong Financial Performance in 2024
Commerzbank reported earnings of €2.68 billion for 2024, reflecting a 20% increase compared to the previous year. The bank also saw its revenues climb by 6%, reaching €11.11 billion.
This growth was primarily driven by higher commission income and increased interest returns. In response to the positive results, Commerzbank raised its dividend per share from €0.35 to €0.65.
From 2022 to 2024, the bank distributed €3.1 billion to its shareholders. CEO Bettina Orlopp emphasized that Commerzbank had exceeded its commitment to returning capital to investors.
“By keeping costs under control and focusing on growth, we significantly boosted our net profit last year,” Orlopp stated. She stressed that Commerzbank remains an attractive investment, reinforcing its strength as an independent financial institution.
UniCredit’s Growing Stake Raises Political Concerns
Despite Commerzbank’s efforts to resist, UniCredit has continued to increase its stake in the German bank. Under the leadership of Andrea Orcel, the Italian lender expanded its holding to 28% in December 2024.
Earlier in September, UniCredit first disclosed a 9% stake, which had been acquired using derivatives to avoid immediate transparency requirements. This strategy angered German politicians, who accused UniCredit of being misleading about its intentions.
Commerzbank’s CEO Bettina Orlopp is set to present a business new strategy to the bank’s board of managing directors on 13 February. The updated plan aims to convince investors that remaining independent is the best path forward.
