Higher returns, higher dividends for shareholders – Commerzbank is preparing for a possible takeover battle with Unicredit. It is offering its investors a promising perspective.
In its struggle with the Italian Unicredit, Commerzbank is setting higher targets for its profitability. The return on equity is to rise to more than 12 percent by 2027, higher than previously planned, the DAX group announced. Commerzbank also wants to distribute more money to shareholders. Commerzbank has “significant growth and value-added potential,” said Supervisory Board Chairman Jens Weidmann.
Specifically, Commerzbank expects net profit to rise to well over EUR 3 billion in 2027 (2023: EUR 2.2 billion). Payout ratios of more than 90 percent are targeted for the years 2025 to 2027. This is significantly more than previously planned. Commerzbank had previously targeted a return on equity of 11.5 percent for 2027, and this year it is expected to be a good eight percent.
In addition, Commerzbank wants to tap into additional earnings potential, for example in corporate banking, asset management and at its Polish subsidiary mBank, said future CEO Bettina Orlopp.
Given Unicredit’s entry, Commerzbank is under pressure to offer its shareholders an attractive perspective. The Italians recently secured 21 percent of the shares in Commerzbank – including financial instruments. This would make them by far the largest shareholder, ahead of the federal government, which holds around 12 percent. Unicredit has also applied for permission to increase its share to up to 29.9 percent.
Source: Stern
