Commerzbank, the second largest bank in Germany, obtained an attributable net profit of 1,435 million euros in 2022, which is more than triple the 430 million registered the previous year and the best result of the entity since 2007.

The German bank’s turnover for the year as a whole totaled 9,461 million euros, 12% more than in 2021, including a 33.2% increase in net interest income, while fee income they decreased by 2.4%, to 3,519 million.

Between October and December, Commerzbank’s attributable net profit increased by 12.1%, to 472 million, while the entity’s turnover increased by 12.7%, to 2,363 million.

The German entity indicated that its transformation is on track, after completing around 9,000 departures from the announced gross workforce adjustment of 10,000 positions, while it has reached its goal of adjusting its branch network, with 450 locations in Germany by mid-2022, with a view to reducing it to around 400 branches this year.

“Commerzbank delivered as promised: we achieved our strategic and financial goals in fiscal year 2022. Despite the difficult economic environment and exceptionally high charges in Poland, we more than tripled our net profit,” said Chairman of the Board Manfred Knof .

In this sense, the entity announced that, after registering its highest profits “in more than ten years”, its CET1 basic capital ratio rose to 14.1%, which leaves the bank in a position to resume the return of capital to its shareholders.

Thus, in accordance with its capital return policy, Commerzbank intends to distribute 30% of its net profit once the AT1 coupon payments have been deducted by forecasting a dividend of 0.20 euros per share and by means of a repurchase of shares of 122 million euros.

Looking ahead to the current financial year, Commerzbank expects another challenging year given the challenging environment. However, it remains optimistic to continue its strong business performance and thus make further progress towards its medium-term goals.

In this way, Commerzbank anticipates a further increase in interest income to well above 6.5 billion euros with clear additional upside potential, while it expects net fee income to remain stable.

Likewise, the bank aims to further reduce its total costs to 6,300 million euros and points to “a net result much higher than that of 2022”.

In addition, the bank intends to increase the pay-out ratio to 50% of consolidated profit after deduction of AT1 coupon payments.