FRANKFURT (dpa-AFX) - Commerzbank AG (CRZBY.PK) said it expects to continue with the positive momentum seen last year and lift its targets for 2024. It now expects higher revenues as well as a higher operating result than it aimed for at the beginning of its 'Strategy 2024. The bank's exposure in Russia and Ukraine is manageable and has already been significantly reduced in the past.
The German lender has increased its revenue target for the 2024 financial year by around 400 million euros to 9.1 billion euros. The increased target is mainly due to additional revenues at mBank as a consequence of growth and the higher interest rates in Poland.
In 2024, the Bank aims for an operating result of 3 billion euros. It had initially planned for an increase to 2.7 billion euros.
Commerzbank sees the potential to return more capital to its shareholders than previously planned. In total, the Bank intends to distribute 3 billion euros to 5 billion euros to shareholders through dividends and potential share buybacks until the 2024 financial year.
From autumn onwards, the central advisory centres are scheduled to start operations at all 12 planned locations and customers will gain access to personal advice at these sites. The optimization of the branch network will be concluded by the Bank, with the number of branches reduced by around a further 100 to reach the target size of 450.
In addition, the Bank said it will continually expand its digital product offering through to 2024.This year, Commerzbank will enlarge its direct bank offering for further corporate clients, introduce the new coverage model for its SME clients, and continue with the streamlining of its international network. The objective is to have closed 10 of the 15 locations scheduled for closure by the end of the year.
As of 1 April 2022, Commerzbank will launch its third venture capital fund since 2014. This fund will have a volume of 300 million euros which means it is 50 million euros larger by volume than the first two funds together.
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