FRANKFURT - Commerzbank AG (OTC:CRZBY) has announced plans to launch a share buyback program with a volume of up to €400 million following a strong fiscal performance in 2024. The German banking institution also expects to propose a dividend of €0.65 per share for the fiscal year 2024, pending approval at the upcoming Annual General Meeting.
The decision for the share buyback and the dividend proposal comes after Commerzbank (ETR:CBKG) reported a preliminary and unaudited net result of €2.68 billion for the fiscal year 2024. This robust financial outcome is attributed to positive developments in net interest and commission income, along with favorable valuation effects in the fourth quarter.
Commerzbank's Board of Managing Directors and the Supervisory Board have agreed to distribute 71% of the net profit, which amounts to €2.44 billion after regulatory deductions. The share buyback is set to begin following the reporting period for the 2024 fiscal year and is expected to conclude by mid-May 2025, in time for the Annual General Meeting.
The bank has indicated that the Common Equity Tier 1 (CET1) ratio, a key measure of financial strength, will stand at 15.1% after the planned distributions.
This announcement is based on a press release statement and contains forward-looking statements regarding Commerzbank's future business prospects, financial results, and strategic initiatives. These statements are not guarantees of future performance and are subject to various risks and uncertainties.
Investors are reminded that forward-looking statements are based on current management expectations and could differ materially from actual future events or results due to a range of factors, including market conditions and regulatory changes. Commerzbank does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of the release.
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