FRANKFURT (dpa-AFX) - Commerzbank can get started with its second share buyback program. With the approval of the European Central Bank (ECB), all requirements have now been met, the company announced late Wednesday evening. The program has a volume of 600 million euros and is thus almost five times as large as the first one, which was completed in June. The Executive Board is to decide on the launch at the beginning of January. The repurchased shares are to be retired. The news was well received on the stock market on Thursday.

Shortly after the start of trading, the Commerzbank share rose by 2.6 percent to 10.80 euros, making it the clear leader in the DAX. Compared to the end of last year, the share has gained more than a fifth. Looking at the past three years, its value has even more than doubled.

Following its rescue by the state in the 2008/2009 financial crisis and many years of restructuring, Commerzbank recently generated billions in profits again. It also managed to return to Germany's leading index, the Dax. However, its largest shareholder is still the German state.

This year, the bank bought back its own shares from the market for the first time - to the tune of 122 million euros. The Executive Board had already announced the second buyback. For the financial years 2022 to 2024, the bank intends to return a total of three billion euros to its shareholders via dividends and share buybacks.

In principle, the bank is aiming to distribute more than 50 percent of its profits - after deducting interest payments for subordinated bonds and minority interests - between 2025 and 2027. It would also be possible for the entire remaining profit to benefit shareholders - but not more than that, as some analysts have recently called for.

Over the next few years, business with wealthy private customers and additional digital offerings for corporate customers should bring the bank higher profits. For 2023, the Executive Board led by CEO Manfred Knof is now aiming for a net profit of around 2.2 billion euros. By 2027, net profit is expected to increase to around 3.4 billion euros./stw/nas/mis