The UBS logo in an office building in Krakow, Poland on February 22, 2024.
Jakub Purzycki | norphoto | Getty Images
UBS on Tuesday announced a new stock buyback program worth up to $2 billion, with up to $1 billion of that total expected to take place this year.
“As previously announced, in 2024 we expect to repurchase up to US$1 billion of our shares, starting with the completion of the merger of UBS AG and Credit Suisse AG, which is expected to take place by the end of the second quarter,” the bank said. In the current situation.
“Our ambition is for share buybacks to exceed the pre-takeover level by 2026.”
The new program follows the completion of the 2022 repurchase process, during which 298.5 million shares were purchased. This represents 8.62% of its shares worth $5.2 billion, according to UBS.
The bank's 2022 share buyback program concluded last month.
Buybacks occur when companies buy their own shares on a stock exchange, reducing the share of shares in investors' hands. They provide a way for companies to return cash to shareholders – along with dividends – and usually coincide with a rise in a company's stock, as shares become scarce.
UBS has taken on the massive task of integrating Credit Suisse's businesses, following the announcement in late March 2023 that former Chairman Sergio Ermotti would return for a second term as CEO.
Figures last week showed that Ermotti earned 14.4 million Swiss francs ($15.9 million) in 2023, following his surprise return. The bank in February reported a second straight quarterly loss on the back of integration costs, but continued to post strong operating profits.
Shares are up more than 6% so far this year.
— CNBC's Elliott Smith contributed to this article.
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