UBS Sets in Motion a $2 Billion Share Buyback Programme
In a strategic move to enhance shareholder value, UBS Group AG has unveiled plans to initiate a new share buyback programme. The Swiss financial giant is poised to repurchase up to $2 billion of its shares, signaling confidence in its financial health and future prospects. This announcement comes on the heels of an aggressive buyback in 2022, where UBS reacquired 298.5 million shares, representing 8.6 percent of its total stock, at the cost of $5.2 billion.
The upcoming buyback programme is scheduled to commence on April 3, with the bank indicating that it could complete up to half of the buybacks by the end of 2024. This move is part of a broader capital return strategy that saw UBS utilize a significant portion of its repurchased shares in the landmark acquisition of its compatriot, Credit Suisse, last year.
Prior to announcing the Credit Suisse deal, UBS had already bought back nearly 1.2 billion Swiss francs ($1.32 billion) worth of its own stock. The bank’s statement outlined a clear roadmap for future repurchases: “As previously communicated, in 2024 we expect to repurchase up to $1bn of our shares, commencing after the completion of the merger of UBS AG and Credit Suisse AG which is expected to occur by the end of the second quarter.”
UBS’s ambitions do not stop there. The bank expressed its intention to push share repurchases beyond the levels seen before the acquisition by 2026. This bold strategy underscores UBS’s commitment to delivering value to its shareholders and its belief in the strength of its operations post-merger.
With a current exchange rate of one dollar to 0.9062 Swiss francs, UBS’s announcement reflects not only a significant financial undertaking but also a testament to its robust position in the global banking landscape.
