Frankfurt, Jan 31 (Reuters) - Commerzbank of Germany reported a 20% increase in net profit for 2024, exceeding analyst expectations. The bank disclosed net profit surged to 2.68 billion euros ($2.78 billion) from 2.22 billion euros in 2023. This profit level surpasses the consensus forecast of 2.47 billion euros.
Describing the profit as a record, Commerzbank also outlined plans for a 400 million euros share buyback and an increased dividend of 65 cents per share, up from 35 cents the previous year.
The bank, which had initially scheduled the earnings release for Feb. 13 along with a strategic update, shared that cost management and growth initiatives played a key role in achieving the significant profit growth.
Commerzbank CEO Bettina Orlopp stated, By consistently managing costs and focusing on growth initiatives, we were able to significantly increase the net result for the past financial year.
Commerzbank shares rose by 2% in Frankfurt by mid-afternoon.
In response to interest from Italy's UniCredit, Commerzbank has been fortifying its defenses to maintain independence, with no official proposal disclosed so far.
The early announcement of earnings will shift the spotlight to Commerzbank's upcoming strategy overhaul on Feb. 13. The institution highlighted that increasing competitiveness remains an ongoing corporate task in the revamp.
Commerzbank has signaled its readiness to evaluate any future proposals from UniCredit, emphasizing its stance on remaining independent.
($1 = 0.9636 euros)