UBS Group said it would buy back up to $2 billion of its shares over the next two years, giving shareholders greater visibility on returns as the lender targets completion of its takeover of Credit Suisse.
The new program will begin Wednesday and end at the latest on April 2, 2026. “Our ambition is for share repurchases to exceed our pre-acquisition level by 2026,” the Zurich-based bank said in a statement Tuesday.
The bank confirmed previously announced plans to repurchase $1 billion of shares this year as part of the new program. Its shares were little changed in early morning trading in Zurich.
UBS also said its 2022 share repurchase program concluded on March 28. It halted that $5 billion share buyback program in April last year amid the government-backed takeover of its former rival.
The lender announced a restart of buybacks in February, signaling confidence over its integration with Credit Suisse. At the same time, the bank has posted two quarterly losses in a row as it grappled with the integration task.
Since closing the takeover of Credit Suisse in June, UBS has outlined major targets for the integration of its former rival including around $13 billion in cost savings, a boost from about $10 billion previously announced. The bank also confirmed its profitability targets through 2026.
Both Chief Executive Sergio Ermotti, who returned to lead UBS last year, and Chairman Colm Kelleher have warned that 2024 will be a more difficult year in terms of keeping costs down. The bank said it expects to complete the merger by the end of the second quarter.
Last month, the Swiss lender announced that it cut its bonus pool for 2023 by 14% despite record annual profit driven by the acquisition of Credit Suisse. The bonus allocation was a reflection of the impact from challenging operating conditions and market volatility, the bank said.
Ermotti received total compensation of around $16 million in 2023, making him the best-paid European bank CEO.
The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.
Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.
The PE-backed RIA makes its first major move since bringing in a new capital partner, adding a Massachusetts advisory firm alongside a second East Coast RIA
Stearns Financial Group's addition brings 30 advisors and three decades of North Carolina planning experience to the platform.
An 86-year-old from Dallas tried to withdraw funds from his account, but Edward Jones invoked a FINRA-backed temporary lockout before he eventually left for Merrill Lynch.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
