REG-Commerzbank Aktiengesellschaft New Capital Return Policy decided: Commerzbank plans to increase shareholder participation in company’s success

COMMERZBANK AGAnnouncement

28/09/2023 17:30

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   Commerzbank Aktiengesellschaft (CZB)
   New Capital Return Policy decided: Commerzbank plans to increase
   shareholder participation in company’s success

   28-Sep-2023 / 18:23 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Total pay-out for 2022 to 2024 of €3 billion confirmed, pay-out ratio
       for 2024 will be at least 70%
     • Net return on tangible equity (RoTE) expected to rise to more than 11%
       in 2027 given a CET 1 ratio of 13.5%
     • For the years 2025 to 2027, pay-out ratio of more than 50% but not
       more than the net result after AT1 coupons and minorities is planned
     • CEO Manfred Knof: “The planned increase of the pay-out ratio is an
       expression of our confidence in the Bank’s further development.”

   Commerzbank expects increased profitability of its businesses and, given a
   CET1 ratio of 13.5%, a net return on tangible equity (RoTE) of more than
   11% by 2027. On this basis, Commerzbank’s Board of Managing Directors has
   decided to update the Bank’s Capital Return Policy following consultation
   with the Supervisory Board.

   For the years 2025 to 2027, a pay-out ratio well above 50%, but not more
   than the net result after the deduction of AT1 coupon payments and
   minorities, is planned. The pay-out ratio depends on the economic
   development and business opportunities. Prerequisite for a dividend is a
   CET1 ratio which is at least 250 basis points above the Minimum Regulatory
   Requirements (MDA) after distribution. The Annual General Meeting (AGM)
   will decide on each dividend payment. In addition to the approval of the
   European Central Bank (ECB) and the German Finance Agency, a prerequisite
   for a share buy-back is a CET1 ratio of at least 13.5% after distribution.

   For 2022 to 2024, Commerzbank intends to return a total of €3 billion to
   shareholders as dividends and share buy-backs. To reach this target, the
   pay-out ratio will be at least 70% in 2024.

   “With the successful implementation of our ‘Strategy 2024’, we have
   created the basis for a further rise in Commerzbank’s profitability,” said
   Manfred Knof, CEO of Commerzbank. “This increases the scope to share our
   success with our shareholders to an even greater extent. The planned
   increase in the pay-out ratio is an expression of our confidence in the
   Bank’s continued development.”

   Following its successful restructuring, Commerzbank has resumed the return
   of capital to its shareholders for the 2022 financial year. In total, the
   Bank has distributed around €370 million by dividend and a first share
   buy-back – corresponding to a pay-out ratio of 30%. For the current
   financial year, the Bank aims to increase the pay-out ratio to 50%.

   The full, revised Capital Return Policy will shortly be available on the
   Commerzbank website:
    1 https://investor-relations.commerzbank.com/capital-return-policy/

   On 8 November 2023, Commerzbank will present all details of the further
   developed strategy as well as the concrete measures and targets for the
   years 2024 to 2027.

    

   Press contact
   Erik Nebel  +49 69 136-44986
   Sina Weiß  +49 69 136-27977

   Investors’ contact
   Ansgar Herkert  +49 69 136-44083

    

   About Commerzbank

   Commerzbank is the leading bank for the German Mittelstand and a strong
   partner for around 26,000 corporate client groups and almost 11 million
   private and small-business customers in Germany. 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 per cent of Germany’s foreign trade and is
   present internationally in almost 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 German connectivity 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 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.:  274699
   EQS News ID:   1737431


    
   End of Announcement EQS News Service

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