UBS Group said it would begin a new share buyback programme of up to US$2 billion beginning in 2024, giving shareholders greater visibility on returns as the lender targets completion of its takeover of Credit Suisse.
The new programme, which would usually run for two years, is set to begin on April 3. “Our ambition is for share repurchases to exceed our pre-acquisition level by 2026,” the Zurich-based bank said in a statement Tuesday (Apr 2).
UBS announced a restart of buybacks in February, signalling confidence that the lender will meet its goals in terms of the integration with Credit Suisse. At the same time, the bank has posted two quarterly losses in a row and chief executive officer Sergio Ermotti has said that 2024 will be a tougher year.
The bank confirmed that the current buyback programme is expected to repurchase up to US$1 billion this year, to commence once the formal merger of the two banks takes place in the second quarter.
In February, the lender boosted cost-saving goals to about US$13 billion from about US$10 billion and confirmed its profitability targets through 2026. BLOOMBERG
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