Commerzbank successfully completes first share buy-back programme
June 23 2023
- Shares worth €122 million repurchased (0.97 per cent of share capital)
- CFO Bettina Orlopp: “With the completion of our first share buy-back, we have successfully established this capital distribution instrument.”
Commerzbank AG successfully completed its first share buy-back programme today (Friday). Since 7 June, the Bank has bought back a total of 12,134,305 of its own shares (ISIN DE000CBK1001) in the amount of €122 million at an average price of around €10,05 per share. This corresponds to a share of 0.97% of the Bank’s share capital. The repurchased shares are expected to be redeemed in the second half of the current year.
The share buy-back programme complemented the dividend payment of 20 cents per share for the 2022 financial year. The Bank has distributed a total of €372 million to its shareholders, which corresponds to 30% of the Group’s profit after deduction of the AT 1 coupon payments.
“It is important to us as Board of Managing Directors that our shareholders participate in the financial success of the Bank,” said Chief Financial Officer Bettina Orlopp. “With the completion of our first share buy-back, we have successfully established this capital distribution instrument. We are convinced that our earnings development will enable further distributions to our shareholders.”
For the 2023 financial year, the Bank aims to increase the pay-out ratio to 50% of the Group’s profit after deduction of the AT 1 coupon payments.
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Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 26,000 corporate client groups and almost 11 million private and small-business customers in Germany. The Bank’s two Business Segments – Private and Small-Business Customers and Corporate Clients – offer a comprehensive portfolio of financial services. Commerzbank transacts approximately 30 per cent of Germany’s foreign trade and is present internationally in almost 40 countries in the corporate clients’ business. The Bank focusses on the German Mittelstand, large corporates, and institutional clients. As part of its international business, Commerzbank supports clients with German connectivity and companies operating in selected future-oriented industries. In the Private and Small-Business Customers segment, the Bank is at the side of its customers with its brands Commerzbank and comdirect: online and mobile, in the advisory centre, and personally in its branches. Its Polish subsidiary mBank S.A. is an innovative digital bank that serves approximately 5.7 million private and corporate customers, predominantly in Poland, as well as in the Czech Republic and Slovakia.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern inter alia the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of Commerzbank as well as expected future financial results, restructuring costs and other financial developments and information. These forward-looking statements are based on the management’s current plans, expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Such factors include the conditions in the financial markets in Germany, in Europe, in the USA and other regions from which Commerzbank derives a substantial portion of its revenues and in which Commerzbank holds a substantial portion of its assets, the development of asset prices and market volatility, especially due to the ongoing European debt crisis, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, the reliability of its risk management policies, procedures and methods, risks arising as a result of regulatory change and other risks. Forward-looking statements therefore speak only as of the date they are made. Commerzbank has no obligation to update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.