Commerzbank forecasts bigger profit returns for investors

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Germany's Commerzbank rejoins German share prize index DAX in Frankfurt

A logo of the bank is seen next to the headquarters of Commerzbank one day ahead of the bank's rejoinment to Germany's share price index DAX in Frankfurt, Germany, February 26, 2023. REUTERS/Kai Pfaffenbach/File Photo Acquire Licensing Rights

FRANKFURT, Sept 28 (Reuters) - Germany's Commerzbank (CBKG.DE) said on Thursday it was revamping its payout policy for investors, aiming for a return of least 70% of profit for 2024.

It also expects a payout ratio of "well above 50%" for 2025 through 2027.

That is higher than the 50% payout, which comes in the form of dividends and share buybacks, that it is expecting for this year.

"Commerzbank expects an increased profitability of its businesses," it said.

The German lender has been undergoing a major overhaul, slashing its workforce and branch network to restore profit. It plans to announce a strategy review on Nov. 8.

Reporting by Tom Sims; Editing by Kirsten Donovan

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