Germany’s Commerzbank profit jumps 20% in 2024 as it fends off UniCredit #NewsGerman

By Tom Sims and Matthias Inverardi

FRANKFURT (Reuters) -Germany’s Commerzbank said on Friday that it posted a 20% increase in net profit in 2024, announcing earnings nearly two weeks ahead of schedule as it fends off interest in a tie-up from Italy’s UniCredit.

Net profit rose to 2.68 billion euros ($2.78 billion) in the year, up from 2.22 billion euros in 2023, the bank said. That is above analyst expectations for profit of 2.47 billion euros, according to a consensus forecast.

Commerzbank said the profit was a record. It also announced a share buyback of 400 million euros and a dividend of 65 cents per share, up from 35 cents a year earlier.

Germany’s No. 2 bank had planned to publish earnings on Feb. 13, alongside an update on its strategy.

“By consistently managing costs and focusing on growth initiatives, we were able to significantly increase the net result for the past financial year,” Commerzbank CEO Bettina Orlopp said.

Commerzbank shares were up 2% by mid-afternoon in Frankfurt.

Last year, Italy’s No. 2 bank disclosed it had snapped up a hefty stake in Commerzbank and began pressing for a tie-up. Commerzbank has been honing its defence as it seeks to remain independent and has called UniCredit’s approach “hostile”.

The early release of earnings means the focus on Feb. 13 will be Commerzbank’s strategy revamp.

“Increasing competitiveness remains an ongoing corporate task,” Commerzbank said in a statement about the revamp.

Commerzbank has said it would review any proposal from UniCredit but that it has so far not received one.

($1 = 0.9636 euros)

(Reporting by Tom Sims; editing by Matthias Williams, Louise Heavens and Christina Fincher)