REG-Commerzbank Aktiengesellschaft Commerzbank increases net result to €2.7 bn in 2024 – Dividend expected to be €0.65 per share

COMMERZBANK AGAnnouncement

31/01/2025 12:45

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   Commerzbank Aktiengesellschaft (CZB)
   Commerzbank increases net result to €2.7 bn in 2024 – Dividend expected to
   be €0.65 per share

   31-Jan-2025 / 13:44 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Revenues up 6% to €11.1 bn driven by strong customer business: net
       commission income up 7% to €3.6 bn – net interest income still at high
       level of €8.3 bn
     • Bank approves additional share buyback of up to €400 m
     • CEO Bettina Orlopp: “We have exceeded our capital return promise to
       our shareholders.”

   Commerzbank reached a net result of €2.68 bn in the past financial year.
   This is an increase of about 20% compared to the previous year’s result
   (2023: €2.22 bn) and, at the same time, marks a record profit for the
   Bank. Revenues rose by 6% to €11.11 bn (2023: €10.46 bn), thanks to strong
   customer business. It was driven by the stronger than forecast growth in
   net commission income by 7% to €3.64 bn (2023: €3.39 bn). Net interest
   income remained at a high level of €8.33 bn (2023: €8.37 bn). In the
   fourth quarter, the Bank also benefited from FX valuation effects of the
   US dollar on AT1 bonds. Despite the challenging economic environment, the
   credit portfolio proved robust: the risk result in the 2024 financial year
   was minus €743 m (2023: minus €618 m). The cost-income ratio further
   improved to 59% (2023: 61%), remaining below the original target of 60%.
   The return on equity (RoTE) increased to 9.2% (2023: 7.7%), significantly
   exceeding the target of at least 8%.

   Based on the strong results, the Bank plans to propose a dividend of €0.65
   per share (previous year: €0.35) to the Annual General Meeting. In
   addition, Commerzbank’s Board of Managing Directors has approved the
   implementation of another share buyback with a volume of up to €400 m. The
   necessary approvals from the German Financial Agency and the European
   Central Bank have been obtained. The share buyback will start after the
   reporting for the 2024 financial year and is expected to be completed by
   the Annual General Meeting in mid-May 2025. This is the second tranche of
   the third share buyback programme, being part of the capital return for
   2024 alongside the dividend payment. The first tranche with a volume of
   around €600 m was completed in January 2025.

   In total, the Bank provides a capital return around €1.73 bn to its
   shareholders for the 2024 financial year. This corresponds to a payout
   ratio of 71% of the net result after deduction of AT 1 coupons. For the
   years 2022 to 2024, the capital return amounts to €3.1 bn – more than
   originally announced. The CET 1 ratio after the capital return is 15.1%.

   “We have exceeded our capital return promise to our shareholders,” said
   Commerzbank CEO Bettina Orlopp. “By consistently managing costs and
   focussing on growth initiatives, we were able to significantly increase
   the net result for the past financial year. Thanks to increasing
   profitability and new growth initiatives, we will further enhance capital
   return in the coming years. Commerzbank is and remains an attractive
   investment.”

   Further details on the 2024 financial year and the upgraded strategy will
   be presented by the Board of Managing Directors on 13 February 2025 in
   Frankfurt.

   The figures for the year 2024 presented in this press release are
   preliminary and unaudited.

    

   Press contact
   Svea Junge  +49 69 9353-45691
   Silvana Herold  +49 69 9353-45680

   Investor’s contact
   Ansgar Herkert  +49 69 9353-47706
   Ute Sandner  +49 69 9353-47708

    

   About Commerzbank
   Commerzbank is the leading bank for the German Mittelstand and a strong
   partner for around 25,500 corporate client groups. In addition, it
   supports private and small-business customers in Germany with more than
   €400 billion assets under management. The Bank’s two Business Segments –
   Private and Small-Business Customers and Corporate Clients – offer a
   comprehensive portfolio of financial services. Commerzbank transacts
   approximately 30% of Germany’s foreign trade and is present
   internationally in more than 40 countries in the corporate clients’
   business. The Bank focusses on the German Mittelstand, large corporates,
   and institutional clients. As part of its international business,
   Commerzbank supports clients with a business relationship to Germany,
   Austria, or Switzerland and companies operating in selected
   future-oriented industries. In the Private and Small-Business Customers
   segment, the Bank is at the side of its customers with its brands
   Commerzbank and comdirect: online and mobile, in the advisory centre, and
   personally in its branches. Its Polish subsidiary mBank S.A. is an
   innovative digital bank that serves approximately 5.7 million private and
   corporate customers, predominantly in Poland, as well as in the Czech
   Republic and Slovakia.

   Disclaimer
   This release contains forward-looking statements. Forward-looking
   statements are statements that are not historical facts. In this release,
   these statements concern inter alia the expected future business of
   Commerzbank, efficiency gains and expected synergies, expected growth
   prospects and other opportunities for an increase in value of Commerzbank
   as well as expected future financial results, restructuring costs and
   other financial developments and information. These forward-looking
   statements are based on the management’s current plans, expectations,
   estimates and projections. They are subject to a number of assumptions and
   involve known and unknown risks, uncertainties and other factors that may
   cause actual results and developments to differ materially from any future
   results and developments expressed or implied by such forward-looking
   statements. Such factors include, amongst others, the conditions in the
   financial markets in Germany, in Europe, in the USA and other regions from
   which Commerzbank derives a substantial portion of its revenues and in
   which Commerzbank holds a substantial portion of its assets, the
   development of asset prices and market volatility, especially due to the
   ongoing European debt crisis, potential defaults of borrowers or trading
   counterparties, the implementation of its strategic initiatives to improve
   its business model, the reliability of its risk management policies,
   procedures and methods, risks arising as a result of regulatory change and
   other risks. Forward-looking statements therefore speak only as of the
   date they are made. Commerzbank has no obligation to update or release any
   revisions to the forward-looking statements contained in this release to
   reflect events or circumstances after the date of this release.

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          DE000CBK1001
   Category Code: MSCU
   TIDM:          CZB
   LEI Code:      851WYGNLUQLFZBSYGB56
   Sequence No.:  374156
   EQS News ID:   2079151


    
   End of Announcement EQS News Service

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