German lending giant Commerzbank AG, currently the takeover target of Italian lender UniCredit SpA, has reaffirmed its strategic plans, anticipating increased net profit and return on equity by 2027.
On Germany's XETRA, Commerzbank shares experienced a rise of approximately 4.6%, trading at 15.99 euros.
In an official statement, Supervisory Board Chairman Jens Weidmann highlighted Commerzbank's significant growth and appreciation potential.
The Board of Management at Commerzbank projects accelerated and stronger profitability improvements in the forthcoming years, surpassing initial forecasts primarily through enhanced earnings.
Commerzbank forecasts a considerable surge in net profit, surpassing 3 billion euros by 2027, and targets payout ratios exceeding 90% for the years 2025 through 2027.
The bank anticipates that Return on Equity (RoTE) will climb to over 12% by 2027, a figure that surpasses previous expectations. Additionally, the acceleration and substantial increase in capital returns to shareholders are planned.
Commerzbank's strategic focus remains on profitable growth, coupled with stringent cost discipline and customer orientation. The company indicated that the implementation of its strategy up to 2027 is progressing efficiently and according to schedule.
CEO-designate Bettina Orlopp stated, "We are continuously evolving our solid growth history based on robust assumptions and refining our financial targets. By harnessing additional earnings potential, particularly in corporate client business, asset management, and at our Polish subsidiary mBank, alongside further efficiency improvements, we will enhance our profitability beyond initial plans. Despite conservative planning, we expect to cover our cost of capital more quickly and return even more capital to our shareholders."
