Swiss banking giant UBS intends to launch a share buyback worth up to $2 billion

“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.