(CercleFinance.com) – UBS confirms its buy advice on the stock with a price target of E16.3 after updating its capital remuneration policy.
The analyst believes that the group has taken ‘steps in the right direction and has clarified the CFF obstacles’.
‘The increase in short-term payments relative to consensus expectations is not very significant,’ says UBS.
Expecting increased profitability of its activities, and with a CET1 ratio of 13.5% and a net RoTE of over 11% expected by 2027, Commerzbank announced an update to its investment policy. return on capital.
For 2022 to 2024, the German bank intends to return three billion euros to its shareholders in the form of dividends and share buybacks. To achieve this objective, the distribution rate will be at least 70% for 2024.
For 2025 to 2027, Commerzbank targets a distribution rate ‘significantly higher than 50%, but not higher than the net result after payment of the AT1 coupon and minority interests’, subject to certain conditions in terms of CET1 ratio.
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