Commerzbank is rising its dividend considerably | EUROtoday

One day earlier than its annual press convention, Commerzbank introduced the primary particulars of the fourth quarter of 2025 and a considerably larger dividend on an advert hoc foundation. Instead of 97 cents, as beforehand anticipated on common by fourteen inventory analysts, the board of administrators will suggest to the final assembly in May 2026 {that a} dividend of 1.10 euros be paid out per Commerzbank share – a complete of round 1.2 billion euros. This vital improve in comparison with the earlier yr, when Commerzbank paid its shareholders, together with the German state at a very good twelve p.c, 65 cents per share in dividends, permits for the annual end in 2025.

As Commerzbank additionally introduced on Tuesday, the annual revenue for 2025 will probably be round 100 million euros larger than anticipated: 2.63 billion euros after taxes. This signifies that Commerzbank stays solely barely under its document web results of 2.68 billion euros. The annual revenue for 2025 contains “restructuring expenses”, for instance for severance funds to workers who lose one of many 3,000 jobs minimize domestically. The day earlier than the annual press convention, Commerzbank didn’t but disclose how a lot these restructuring prices had impacted the pre-tax consequence. However, it put the online revenue with out restructuring prices at three billion euros to make it clear that with out these prices it could have achieved a brand new document revenue in 2025.

It has been identified for a while that the Commerzbank board led by chairwoman Bettina Orlopp and CFO Carsten Schmitt, who took workplace precisely a yr in the past, wish to use somewhat greater than the complete revenue for 2025 for dividends and shopping for again their very own shares. This is a part of the “Momentum” technique with which the German credit score establishment is attempting to fend off a takeover by Unicredit. The Italian financial institution invested closely in Commerzbank in September 2024 by promoting shares from the federal authorities. Although the federal authorities now rejects Unicredit’s full takeover of Commerzbank, the Italian financial institution has expanded its place as the biggest shareholder to a 29 p.c shareholding. In addition, Unicredit shares rose extra strongly than Commerzbank shares previously three months. This will be essential as a result of it’s anticipated that Unicredit would settle a big a part of a takeover provide with its personal shares.

On Monday, the Unicredit board led by chairman Andrea Orcel offered sensible enterprise outcomes for 2025. The document revenue of 10.6 billion euros corresponds to a web return on fairness invested (Red) of 19.2 p.c. With its web revenue of two.68 billion euros, Commerzbank is prone to be at a very good eight p.c. Nevertheless, the Commerzbank board is attempting to get again on the offensive in opposition to Unicredit and provides its personal share worth new impetus. This was achieved on Tuesday: After the publication of the primary figures for the 2025 monetary yr, Commerzbank shares rose by a very good one p.c, whereas the DAX quickly fell into the pink.

“2025 was a very successful financial year for Commerzbank, and we would like to let our investors share in this success,” stated CEO Orlopp in a press launch. “In total, we are returning 2.7 billion euros in capital, a little more than we originally promised,” added Orlopp, referring to a share buyback for one billion euros accomplished in December 2025, the dividend distribution and a brand new share buyback program. This is what the board determined: New share buybacks will start this week, for which 540 million euros will probably be spent by March twenty sixth on the newest.

As Commerzbank additionally introduced on Tuesday, Chief Risk Officer Bernd Spalt will probably be leaving the financial institution after his contract runs till the top of 2026. Spalt, who’s an excellent chess participant, isn’t in search of to increase his contract.