Commerzbank will repurchase shares worth up to €400 million, as stated in its earnings report released on Friday. The German lender secured all regulatory approvals and aims to complete the buyback before the Annual General Meeting in mid-May.
The announcement comes as Commerzbank faces an unsolicited takeover attempt from Italy’s UniCredit. The bank’s leadership is actively defending its independence by demonstrating strong financial results and shareholder value.
Strong Financial Performance in 2024
In 2024, Commerzbank achieved a net profit of €2.68 billion, reflecting a 20% increase compared to 2023. The bank also reported a 6% revenue growth, reaching €11.11 billion. This boost came mainly from higher commission earnings and strong interest income.
To reward investors, Commerzbank raised its dividend to €0.65 per share, up from €0.35 in the previous year. Over the period 2022 to 2024, the bank will have returned €3.1 billion to shareholders.
“We have exceeded our capital return commitments,” said Commerzbank CEO Bettina Orlopp. She credited cost management and growth strategies for the bank’s success. Orlopp emphasized that Commerzbank remains an attractive investment on its own.
UniCredit Increases Its Stake, Berlin Reacts
While Commerzbank strengthens its position, UniCredit continues expanding its influence. In December, the Italian bank increased its Commerzbank stake to 28%. This move followed its September disclosure of a 9% stake acquisition.
UniCredit initially used derivatives to accumulate shares, bypassing disclosure requirements. This method sparked criticism from German politicians, who accused UniCredit of lacking transparency.
Orlopp remains focused on convincing investors that Commerzbank should remain independent. On February 13, she will present an updated strategic plan to the bank’s board of managing directors, outlining the next steps in defending against the takeover.
