Commerzbank hikes dividend as 2024 profit and revenue increase

(Alliance News) - Commerzbank AG on Friday said it made a record profit in 2024 as it hiked its dividend and set out plans for further share buybacks in 2025.

The Frankfurt-based bank said its 2024 net result increased 21% to EUR2.68 billion from EUR2.22 billion in the previous year.

Revenue grew 6.2% to EUR11.11 billion from EUR10.46 billion due to "strong customer business".

The company said it also benefitted from foreign exchange valuation effects of the US dollar on AT1 bonds in the fourth quarter, as well as the credit portfolio proving "robust".

Commerzbank said it plans to propose a dividend of EUR0.65 per share, up 86% from EUR0.35 in the previous year.

The board has also approved another share buyback with a volume up to EUR400 million, which will start after the reporting for the 2024 financial year.

The buyback is expected to be completed by the annual general meeting in mid-May 2025.

Chief Executive Officer Bettina Orlopp said: "We have exceeded our capital return promise to our shareholders. By consistently managing costs and focusing 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."

The full figures for the financial year will be released on February 13.

Commerzbank shares were up 1.9% to EUR18.72 in Frankfurt on Friday afternoon.

By Michael Hennessey, Alliance News reporter

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