FRANKFURT (Reuters) - Shares of Commerzbank were up 11% midday on Friday after the German lender said it was revamping its payout policy for investors, aiming for a return of least 70% of profit for 2024.
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.
The bank, which laid out its distribution plans after markets closed on Thursday, also expects a payout ratio in dividends and share buybacks of "well above 50%" for 2025 through 2027.
The plan "would suggest materially more capital distributions than currently factored into consensus," RBC Capital Markets said in a note.
At 0958 GMT, shares traded up 11%, at 10.78 euros ($11.44), slightly off the session highs.
($1 = 0.9425 euros)
(Reporting by Tom Sims and Tristan Veyet, Editing by Friederike Heine)