Capital return
Commerzbank is committed to consistently return capital to shareholders, targeting a regular distribution significantly above 50%, but not exceeding the IFRS net profit after AT1 coupon payments, minority interests, excluding extraordinary, non-recurring items.
Return consists of share buyback* and dividend approved at AGM of following year.
The payout will also depend on the economic conditions and business opportunities. Commerzbank aims to at least maintain and steadily increase the dividend per share. Share buybacks will be applied for any remaining capital to be returned within the payout ratio.
CET1 ratio
A prerequisite for a dividend is a CET1 ratio of at least MDA + 250bp after distribution.
Prerequisite for a share buyback* is a CET1 ratio of at least 13.5% after distribution.
In case the CET1 ratio is expected to remain well above 13.5% in the medium term, an extraordinary distribution above the IFRS net profit will be considered as an option*; this is subject to macro-economic developments and a successful strategy execution.
*Subject to alignment with / approval by ECB and German Finance Agency
