Banks Commerzbank sets higher targets in tussle with Unicredit
Higher returns, higher dividends for shareholders - Commerzbank is gearing up for a possible takeover battle with Unicredit. It is presenting its investors with a promising outlook.
26.09.2024, 10:02
26.09.2024, 10:03
SDA
Commerzbank is setting itself higher profitability targets in its battle with Italy's Unicredit. The return on equity is to rise to more than 12 percent by 2027, which is higher than previously planned, as the DAX-listed group announced.
Commerzbank also intends to distribute more money to shareholders. Commerzbank has "considerable potential for growth and value enhancement", said Jens Weidmann, Chairman of the Supervisory Board.
Specifically, Commerzbank expects net profit to increase to well over 3 billion euros in 2027 (2023: 2.2 billion euros). For the years 2025 to 2027, payout ratios of more than 90 percent are targeted. This is significantly more than previously planned. Previously, Commerzbank had targeted a return on equity of 11.5 percent for 2027; in the current year, it is expected to be a good eight percent.
Commerzbank also wants to tap into additional earnings potential, for example in corporate client business, asset management and at its Polish subsidiary mBank, said future CEO Bettina Orlopp.
In view of Unicredit's investment, Commerzbank is under pressure to offer its shareholders attractive prospects. The Italians recently secured a 21 percent stake in Commerzbank, including financial instruments. This would make them by far the largest shareholder ahead of the German government, which holds around 12 percent. Unicredit also applied for permission to increase its stake to up to 29.9 percent.
