On Tuesday, UBS revealed its intention to restart share buybacks in the second half of the year, allocating up to $1 billion by 2024. This decision comes as the Swiss banking giant completes the initial phase of integration of its fallen competitor, Credit Suisse.
The integration process, while moving forward, has incurred significant costs, contributing to UBS’s fourth-quarter net loss of $279 million. However, this figure is slightly less than the expected loss of $285 million, according to a consensus estimate compiled by the company.
Additionally, UBS intends to reward its shareholders by proposing a dividend of $0.70 per share for fiscal 2023, a substantial increase of 27%.
CEO Sergio Ermotti expressed confidence in the bank’s trajectory despite the challenges, citing the influx of net new assets totaling $77 billion since the Credit Suisse acquisition. Ermotti emphasized the bank’s commitment to leveraging its expanded scale and capabilities across multiple client franchises, along with greater resource discipline, to drive long-term sustainable growth and generate higher returns.
The announcement underscores UBS’s strategic vision and resilience in navigating a competitive and evolving financial landscape.
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