Commerzbank: Dividend frenzy for shareholders takes off!

Commerzbank: Dividend frenzy for shareholders takes off!

Commerzbank recently paid out a higher dividend after its annual general meeting than in the previous year, which indicates the company's positive development. CEO Manfred Knof, who took over the helm in 2021 and initiated a comprehensive restructuring, can look back on a steady increase in the share price. After a de facto dividend ban for European banks imposed by the European Central Bank (ECB) in 2020, Commerzbank paid a dividend of 0.20 euros per share in 2022 for the first time since 2018. The dividend has already been increased to 0.35 euros for 2023.

Particularly noteworthy is the decision of the Annual General Meeting on May 15, 2023 to approve a distribution of 0.65 euros per share for 2024. This development reflects the ambitious goals that Commerzbank has set for itself by 2028. Analysts expect a continuous increase in the dividend in the coming years: 0.89 euros per share for 2023, 1.22 euros for 2026, 1.49 euros for 2027 and finally 1.70 euros for 2028. These dividends will achieve yields of 3.3 to over 6 percent at today's price levels.

Share buybacks and growth

A central element of Commerzbank's new strategy is shareholder profit sharing. Between January and March 2023, 400 million euros have already been invested in share buybacks. In the future, the bank is planning further buybacks amounting to 600 million euros to provide additional value to shareholders. The Commerzbank share price has risen by around 70 percent since January, which underlines the confidence in the renewal strategy.

Commerzbank is considered the leading bank for German medium-sized businesses and serves around 25,500 corporate customer groups. It also manages invested assets of over 400 billion euros for private and corporate customers in Germany. The bank offers financial services in two main business areas: private and business customers and corporate customers. Commerzbank handles around 30 percent of German foreign trade and is represented internationally in corporate customer business in more than 40 countries.

Focus on customers and services

Commerzbank focuses on German medium-sized companies, large companies and institutional customers, as well as international customers with business ties to Germany, Austria or Switzerland. Their services are offered under the Commerzbank and comdirect brands both online, mobile, in the advice center and in person on site.

Particularly noteworthy is the Polish subsidiary mBank S.A., which serves around 5.7 million private and corporate customers mainly in Poland as well as in the Czech Republic and Slovakia. Commerzbank is also active in future-oriented industries.

In its disclaimer, the Company draws attention to forward-looking statements that relate to expected business developments, efficiency gains and financial results. These statements are based on the management board's plans and forecasts and are subject to risks and uncertainties that could lead to deviations from the targets.

Overall, with its dividend policy and ongoing buybacks, Commerzbank shows a clear focus on profit sharing for its shareholders and thus sets strategic priorities for the future.