UBS Group AG Announces Up to $2 Billion Share Buyback Program

Key Points

• UBS Group AG (UBS) announces a new share buyback program worth up to $2 billion, starting April 3, 2024, and continuing until April 2026.
• The bank plans to repurchase up to $1 billion of its shares in 2024, following the merger with Credit Suisse AG, aiming to exceed pre-acquisition levels by 2026.
• UBS's financial performance and strategic expansion plans in the U.S. wealth sector signal strong growth prospects and commitment to enhancing shareholder value.

In this news

UBS Group AG (UBS), the Swiss financial services giant, has unveiled plans to initiate a new share buyback program worth up to $2 billion, signaling a strong financial position and confidence in its future growth prospects. The announcement comes after the successful conclusion of its 2022 share repurchase program, which saw the bank repurchasing 298,537,950 shares, amounting to 8.62% of its current registered share capital. This move underscores UBS's commitment to returning value to its shareholders and optimizing its capital structure, especially in the wake of its merger with Credit Suisse AG.

The new share buyback program is set to commence on April 3, 2024, and is expected to continue until April 2026. UBS has outlined its plans to repurchase up to $1 billion of its shares in 2024 alone, aiming to exceed pre-acquisition levels by 2026. This strategic decision follows the bank's robust performance and a clear path to expanding its U.S. wealth business through potential mergers and acquisitions. Moreover, UBS's financial health was highlighted in its recent earnings report, which showed a net loss per share of $0.09 on revenue of $10.86 billion for the fourth quarter, alongside a proposed dividend of $0.70 per share to be discussed at the annual general meeting scheduled for April 24.

Looking ahead, UBS's aggressive share buyback program and expansion plans are likely to bolster investor confidence and potentially enhance shareholder value. The bank's share price has already seen a nearly 47% increase over the past year, with analysts maintaining a Moderate Buy consensus rating and an average price target of $31.98. As UBS navigates through the integration of Credit Suisse and embarks on further expansion, the financial community will be closely monitoring its ability to sustain growth, manage risks, and continue delivering value to its shareholders.