Investing.com -- Commerzbank reported a net profit of €2.68 billion for 2024, marking a 20% increase from the previous year’s €2.22 billion and setting a record for the bank.
In a release Friday, the company reported preliminary and unaudited results.
Revenue rose 6% to €11.1 billion, driven by strong customer business, with net commission income up 7% to €3.64 billion. Net interest income remained high at €8.33 billion.
CEO Bettina Orlopp highlighted the bank’s success in exceeding its capital return targets, stating, “We have exceeded our capital return promise to our shareholders.”
The return on equity increased to 9.2%, surpassing the bank’s target of at least 8%. The cost-income ratio improved to 59%, down from 61% in 2023.
In light of its strong financial performance, Commerzbank (ETR:CBKG) announced a dividend proposal of €0.65 per share, nearly doubling from €0.35 the previous year.
Additionally, the bank’s board approved a new share buyback program of up to €400 million following regulatory approvals.
The buyback will begin after the 2024 financial report and is expected to conclude by mid-May. This follows a €600 million tranche completed in January, bringing the total capital return for 2024 to €1.73 billion, equivalent to a 71% payout ratio.
Commerzbank’s capital return for 2022-2024 now stands at €3.1 billion, exceeding initial projections. The bank’s CET1 ratio after capital return is 15.1%. Orlopp emphasized that Commerzbank remains “an attractive investment” due to its focus on cost management, profitability, and growth initiatives.