The UBS logo is seen in the office building in Krakow, Poland on February 22, 2024.
Jakub Porzycki | Photo only | Getty Images
UBS announced on Tuesday a new share buyback program worth up to $2 billion, with up to $1 billion of that expected to take place this year.
“As previously communicated, we expect to repurchase up to $1 billion of our shares in 2024, beginning upon completion of the merger of UBS AG and Credit Suisse AG, which is expected to occur by the end of the second quarter “ the bank said in a statement.
“Our goal is for share repurchases to exceed our pre-acquisition levels by 2026.”
The new program follows the completion of the buyback in 2022, which acquired 298.5 million It shares. According to UBS, this represented 8.62% of shares worth $5.2 billion.
The bank’s 2022 share buyback program was completed last month.
Buybacks occur when companies buy their own shares on the stock market, thereby reducing the proportion of shares in the hands of investors. They provide companies with a way to return cash – along with dividends – to shareholders, and typically coincide with a rise in a company’s shares as shares become more scarce.
UBS has taken on the mammoth task of integrating Credit Suisse’s business after announcing in late March 2023 that former boss Sergio Ermotti would return for a second term as CEO.
Figures last week showed Ermotti earned 14.4 million Swiss francs ($15.9 million) after his surprise return in 2023. The bank reported a second straight quarterly loss in February due to integration costs, but continued to deliver strong underlying operating profits.
Shares are up more than 6% so far this year.
—CNBC’s Elliot Smith contributed to this article.
Source link
2024-04-02 06:52:57
www.cnbc.com
