Rudolph Angler The German lender Commerzbank will repurchase shares worth up to €400 million, according to its earnings report released on Friday. The bank confirmed that regulatory approvals had already been secured.
The buyback will be finalized before the Annual General Meeting in mid-May this year. The decision comes as Commerzbank fights off a potential takeover by Italy’s UniCredit.
Strong Financial Results and Increased Dividends
Commerzbank reported earnings of €2.68 billion for 2024, reflecting a 20% increase compared to 2023. The bank’s revenues grew 6% year-over-year, reaching €11.11 billion. Strong commission income and interest returns boosted the results.
Commerzbank also raised its dividend to €0.65 per share, up from €0.35 the previous year. As a result, shareholders will have received €3.1 billion in total payouts from 2022 to 2024.
CEO Bettina Orlopp emphasized the bank’s financial success. “We have exceeded our capital return commitment to shareholders,” she stated. She credited strict cost control and growth initiatives for the positive results. “Commerzbank remains a highly attractive investment,” she added.
UniCredit’s Takeover Attempt Faces Resistance
CEO Orlopp is actively working to fend off a takeover attempt by UniCredit. She aims to demonstrate Commerzbank’s value as an independent institution, hoping to convince investors that a merger is unnecessary.
Under Andrea Orcel’s leadership, UniCredit raised its stake in Commerzbank to 28% in December 2024. Just a few months earlier, in September, UniCredit first disclosed that it had acquired a 9% stake.
UniCredit initially used derivatives to build its position, avoiding immediate disclosure. This led to accusations from Berlin politicians, who claimed the Italian bank had acted deceptively.
On February 13, Orlopp will present Commerzbank’s updated strategy to its board of managing directors. The bank’s future direction will play a crucial role in determining whether it remains independent.