26 September 2024

Commerzbank Aktiengesellschaft: Commerzbank’s Supervisory Board and Executive Board confirm strategy

26-Sep-2024 / 09:03 CET/CEST

- Chairman of the Supervisory Board Jens Weidmann: Commerzbank has considerable potential for growth and appreciation

- The Board of Management expects faster and stronger improvements in profitability: Return on equity is expected to rise to more than 12% by 2027

- Increased and accelerated capital return to shareholders planned

During the annual strategy dialog with the Board of Managing Directors, the Supervisory Board of Commerzbank unanimously confirmed its support for its strategy, which aims to achieve a reliable and sustainable increase in value. The strategic priority remains profitable growth, while maintaining strict cost discipline and customer orientation. The implementation of Strategy until 2027 is progressing rapidly and on schedule, and Commerzbank is reliably delivering the announced progress.

In addition to the original plans, the Bank’s profitability is to be improved even more in the coming years, primarily by further increasing its earnings. As a result, the Board of Managing Directors expects Commerzbank to increase its Return on Tangible Equity (RoTE) to more than 12% by 2027 and thereby stronger than previously planned. In addition, the return of capital to shareholders is to be accelerated and significantly increased: Commerzbank expects its net profit to rise significantly to over €3 billion in 2027 and aims for payout ratios of more than 90% for the years 2025 to 2027, but not more than the net result after deduction of AT1 coupon payments. This is subject to the approval of the ECB and the German Finance Agency.

The Chairman of the Supervisory Board of Commerzbank AG, Jens Weidmann, said: “We are very satisfied with the implementation and ongoing further development of our Strategy until 2027, which continues to be supported with vigor by the Supervisory Board. Commerzbank is continuously expanding its independent position as a strong pillar in the German banking market and a reliable partner to the domestic economy. As ’Bank for Germany’, we firmly believe that it has considerable growth and appreciation potential.”

Bettina Orlopp, future CEO, said: “We are continuously developing our robust growth history based on very solid assumptions and are sharpening our financial targets. By realizing additional earnings potential, for example in corporate clients business, asset management and at our Polish subsidiary mBank, as well as implementing further efficiency gains, we will improve our profitability more strongly than originally planned. Despite conservative planning, we expect to earn our cost of capital faster and return even more capital to our shareholders. In this way, as in previous years, we will continue to create value for all our shareholders in the future.”

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