More money for shareholders
Coba wants to pay out at least 50 percent
September 28, 2023, 7:11 p.m
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Commerzbank wants to distribute at least half of its profits to shareholders over the next few years through dividends and share buybacks. For the coming year, the financial institution’s shareholders can even expect a distribution of at least 70 percent.
Commerzbank wants its shareholders to participate more in the company’s success. For the financial years 2022 to 2024, a total of three billion euros will be distributed to shareholders through dividends and share buybacks, as the Frankfurt DAX group announced.
“In order to achieve this, the payout ratio for 2024 will be at least 70 percent,” said Commerzbank after consultations with the board of directors and supervisory board. In principle, the bank aims to distribute more than 50 percent of its profits – after deducting interest payments for certain bonds and minority shares – in the years 2025 to 2027. It would also be possible that the entire profit that remains afterwards would benefit the shareholders – but not beyond what some analysts have recently demanded.
For the 2022 financial year, Commerzbank granted a dividend of 20 cents per share for the first time after three zero rounds, and around 370 million euros went to the shareholders. That corresponded to a dividend yield of around two percent. For the current year, CFO Bettina Orlopp recently announced a profit distribution of around 900 million euros. The bank has now confirmed this in its plans. According to current planning, shareholders can expect around 1.7 billion euros for 2024.
Commerzbank’s largest individual shareholder is the federal government, which currently has a 15.6 percent stake. The German state saved Commerzbank from collapse during the 2008/2009 financial crisis with billions in taxes. Commerzbank plans to comprehensively explain details of the future strategy as well as the specific measures and goals for the years 2024 to 2027 on November 8th.