A “mild recession” is on the cards, according to CEO of Commerzbank, Manfred Knof.
Photo Alliance | Photo Alliance | Getty images
Commerzbank On Friday, unexpectedly quarterly results published, in which “record” annual profit was recommended and announced a new share purchasing schedule.
The bank said it has achieved an increase of 20% in net profit to 2.68 billion euros ($ 2.78 billion) in 2024. This is compared to a net profit for the $ 2.47 billion period, according to a Consensus estimate cited by Reuters.
The group explained the intentions to buy back 400 million euros in shares and proposed to increase his dividend payment to 0.65 euros per share, compared to 0.35 euros per share in the previous year.
Shares in the lender rose 2% at 2.10 pm London, after the release.
Other annual highlights were the net result of 8.33 billion euros in 2024, versus 8.37 billion euros in the previous year, noticing the bank that it benefited from Devieens valuation in the fourth quarter. The return on tangible equity – a measure of profit performance – took up to 9.7% in 2024 in 2024 in 2023, which exceeded the goal of the group to hit at least 8%.
The group originally stated plans to publish its fourth quarter and annual income on 13 February, when it also intends to deliver its annual strategy update and prospects. The early release drops in step with German legal requirements when the amount of capital efficiency considerably exceeds the expectations of capital markets.
The results come as Commerzbank has made a case to be alone, after a surprise interest build of the second largest lender Unicredit speculation of interest in a potential takeover of Italy. Unicredit now has a direct interest of 9.5% and an interest of 18.5% via derivatives in Commerzbank, after first building his interest in September, and then increased its position.
The move is opposed to the German government, whose finance minister Jörg Kukies criticized the “very aggressive, very opaque” bid of Unicredit in a CNBC interview last week.
“We have surpassed our Capital Return promise to our shareholders,” says Bettina Orlopp CEO of Commerzbank in a statement in the results, stating cost management and growth initiatives such as stimulating the increase in profit.
“Thanks to the increasing profitability and new growth initiatives, we will further improve the capital efficiency in the coming years. Commerzbank is and will remain an attractive investment,” she noticed.
Since the conviction in September, Unicredit has also launched a takeover bid for the Interior Italian pear Banco BPMCalling questions about whether it will move forward with a domestic or German company.