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A "mild recession" is on the cards, according to Commerzbank CEO Manfred Knof.
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Commerzbank on Friday unexpectedly released quarterly results, touting "record" annual profit and announcing a new share buyback scheme.
The bank said it achieved a 20% increase in net profit to 2.68 billion euros ($2.78 billion) in 2024. This compares with a $2.47 billion net profit forecast for the period, according to a consensus estimate cited by Reuters.
The group laid out intentions to repurchase 400 million euros of shares and proposed to lift its dividend payout to 0.65 euros per share, compared with 0.35 euros per share in the previous year.
Shares in the lender were up 2.3% at 1:30 p.m. London time, following the release.
The group had originally listed plans to publish its fourth-quarter and annual earnings on Feb. 13, when it also intends to deliver its annual press conference. The early release falls in step with German legal requirements when the amount of capital return significantly surpasses the expectations of capital markets.
The results come as Commerzbank has been making a case to stand alone, after a surprise stake build from Italy's second-largest lender UniCredit stoked market speculation of interest in a potential tie-up. UniCredit now owns a direct 9.5% stake and a 18.5% stake via derivatives in Commerzbank, after first building its stake in September, then subsequently increasing its position.
This breaking news story is being updated.
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