UBS Announces Resumption of Share Buybacks Despite Q4 Loss
UBS reveals plans to resume share buybacks despite Q4 loss. CEO Sergio Ermotti remains optimistic about long-term growth amidst integration efforts.
On Tuesday, UBS revealed its intention to recommence share buybacks in the latter half of the year, allocating up to $1 billion for the year 2024. This decision comes as the Swiss banking giant completes the initial phase of integrating its fallen competitor, Credit Suisse.
The integration process, while progressing, has incurred significant costs, contributing to UBS's fourth-quarter net loss of $279 million. However, this figure stands slightly lower than the anticipated loss of $285 million, as per a consensus estimate compiled by the company.
Furthermore, UBS aims to reward its shareholders by proposing a dividend of $0.70 per share for the fiscal year 2023, marking a substantial 27% increase.
Advertisement
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 acquisition of Credit Suisse. Ermotti emphasized the bank's commitment to leveraging its expanded scale and capabilities across various client franchises, coupled with enhanced resource discipline, to drive sustainable long-term growth and yield higher returns.
The announcement underscores UBS's strategic vision and resilience in navigating a competitive and evolving financial landscape.
Als0 Read: 2 Growth Stocks Poised for Potential Surge in 2024
