FRANKFURT Shares of Commerzbank were down 3.4% late on Friday after a German newspaper reported details of the lender's new strategy plans to be announced in November.

The board of Commerzbank is aiming to pay out at least half of its profit as dividends and share buybacks under the strategy, the Handelsblatt business daily reported, citing several people familiar with the matter.

In addition, the lender wants to increase its return on equity to more than 8% in 2024, more than 9% in 2025 and more 10% in 2026, according to the report.

Commerzbank declined to comment.

Shares of the bank were down by only around 0.4% before publication of the report.

The bank has said it aims to pay out 50% of profit this year, and its return on equity was 7.9% in the second quarter.

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

Like many banks, Commerzbank has been benefiting from a rise in interest rates and the income that generates.

The bank's chief executive Manfred Knof said this week that the main focus of the new strategy would be growth in its customer business.

Separately, finance chief Bettina Orlopp said wealth management and the bank's trade finance business were areas with untapped potential that would be highlighted when the bank presents its strategy.

She also said the bank also aimed to increase its digital offerings, especially for brokerage customers.

($1 = 0.9365 euros)

(Reporting by Tom Sims, Writing by Rachel More, Editing by Friederike Heine, Kirsten Donovan)