flatexDEGIRO plans €100m buyback with BaFin approval still required

flatexDEGIRO intends to repurchase up to €100 million of its shares after receiving BaFin approval. On 15 October, its management board, in agreement with the supervisory board, decided to apply for permission under the banking capital rules. It will use the authority granted by shareholders on 4 June 2024. The announcement sets a ceiling and an approval condition; it does not specify a purchase timetable.[1]

The relevant capital measure is smaller than accounting equity

At the full ceiling, €100 million is 19.4% of the reported own-funds figure and 87.0% of first-half net profit. These calculations show materiality, not a post-buyback capital ratio. The eventual regulatory position will also reflect subsequent earnings, risk exposures, distributions and the permission granted.[2]

The distinction matters for an online broker with a banking business. Customer cash on a balance sheet supports obligations and operating activity; it cannot simply be treated as spare corporate cash. flatexDEGIRO’s report describes its cash and equivalents as supporting banking, brokerage and regulatory liquidity requirements. It also records higher securities-backed lending, which uses resources alongside generating income.[2]

BaFin’s decision concerns the resources left after the return

The European Banking Authority’s explanation of Article 78(1)(b) describes a test of the institution’s own funds and eligible liabilities after the proposed reduction: they must remain above the relevant requirements by a margin acceptable to the supervisor. This is why an existing shareholder authorisation and a profitable trading period do not, by themselves, settle the prudential decision.[6]

A separate EBA Q&A on buyback deductions explains that permission specifies the maximum euro amount the institution can spend, with the supervisory assessment based on the maximum impact on Common Equity Tier 1 capital. The cash consideration matters, rather than merely the nominal share capital represented by the shares bought. This connects the programme’s size directly to the capital available to support the remaining business.[5]

Twice the budget does not mean twice the shares

flatexDEGIRO completed its previous programme on 2 May 2025, after starting on 1 October 2024. It acquired 3,136,243 shares for approximately €50 million at an average €15.94 per share, equivalent to about 2.8% of share capital. The new ceiling doubles that cash amount, but the number of shares acquired would depend on the prices paid and the amount actually executed.[3]

That distinction also affects the per-share outcome. Repurchasing shares reduces the shares held by outside investors while the company holds them in treasury, but money used for the purchase is no longer available elsewhere in the business. A larger earnings-per-share figure resulting from fewer shares is therefore different from an improvement in the operating earnings generated by the broker.[3][4]

The 2024 board report explaining the shareholder authorisation envisaged several uses for acquired shares, including employee remuneration, acquisitions, resale and cancellation. Shares retained for later issuance can meet future obligations, while cancellation makes the reduction in issued shares permanent.[4]

The October announcement does not choose between those uses. That decision will help establish how lasting any reduction in the publicly held share count will be.[1]

A capital decision alongside a profitable growth plan

The investor-relations overview states 2026 objectives of approximately €650 million revenue and €200–230 million net income. Against that earnings range, the proposed ceiling represents about 43.5–50% of a full year’s expected profit, calculated from the published guidance. Guidance is prospective, so this is a comparison with management’s plan rather than a payout ratio based on completed annual results.[7]

The commercial question is how much capital can be returned while retaining the ability to finance clients, invest in the platform and absorb changes in market activity. The programme’s approval and execution terms will make that allocation concrete. For now, the €100 million figure defines management’s intended scale, with the banking-capital assessment still governing implementation.

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