FRANKFURT - Commerzbank AG (OTC:CRZBY) has successfully completed the first tranche of its third share buyback program on Monday, repurchasing 38,837,806 shares, which equates to 3.278% of the bank's share capital, at an average price of approximately €15.45 per share, totaling around €600 million.
CEO Bettina Orlopp stated, “The completion of the first tranche is an important step towards our target of returning at least 70% of our net result to our shareholders for the 2024 financial year.” The bank has also applied for approval from the European Central Bank and the German Finance Agency to commence a second tranche of up to €400 million.
This move is a part of Commerzbank (ETR:CBKG)'s strategy to increase shareholder returns, which will include dividends in addition to the share buybacks. The third buyback program, with a planned volume of up to €1 billion, marks the largest in the bank's history. The previous two buybacks saw the bank repurchase shares for around €122 million and €600 million for the financial years of 2022 and 2023, respectively.
Commerzbank, a key player in Germany's banking sector, is a primary bank for the German Mittelstand and a significant partner for around 25,500 corporate client groups. It also serves private and small-business customers in Germany, managing assets of more than €400 billion. Internationally, Commerzbank operates in over 40 countries, focusing on German-related businesses, large corporates, and institutional clients.
The information for this report is based on a press release statement.
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