The Government of the United States decreases its ownership share in Commerzbank
At this moment, the federal administration retains a 16.49% share in Commerzbank due to the Financial Market Stabilization Fund (FMS). As per Eva Grunwald, the CEO of the Federal Agency, the bank's financial situation has shown a consistent improvement since 2021, potentially marking the beginning of disinvestment. The interministerial steering group will determine the next steps for selling shares at an appropriate time, as stated.
Prior to this, the federal administration had not taken part in Commerzbank's multiple share repurchase programs, consequentially escalating its hold on the bank slightly.
Commerzbank wrapped up the preceding year with the most significant profit in 15 years. Its net profit, being the second-largest German bank, emerged as a 55% increase from 2022, reaching 2.2 billion euros. The revenue also escalated beyond 10%, settling at 10.5 billion euros.
The federal administration's decision to not participate in Commerzbank's share repurchase programs led to an increase in its ownership share. This situation might encourage more participation in potential future share sale programs, facilitating the gradual disinvestment.
