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Swiss Financial Behemoth UBS Is Set To Begin A $2 Billion Share Buyback Program

Swiss Financial Behemoth UBS Is Set To Begin A $2 Billion Share Buyback Program
A fresh $2 billion share repurchase programme was unveiled by UBS on Tuesday, with up to $1 billion of that amount anticipated to be paid out this year.
“As previously communicated, in 2024 we expect to repurchase up to USD 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,” the bank said in a statement.
“Our ambition is for share repurchases to exceed our pre-acquisition level by 2026.”
The 2022 buyback, which saw the acquisition of 298.5 million of its shares, comes to an end with the launch of the new programme. According to UBS, this accounted for 8.62% of its $5.2 billion worth of stock.
The bank's programme to repurchase shares in 2022 came to an end last month.
Buybacks occur when companies buy back their own shares on the stock exchange, thereby decreasing the amount of shares held by investors. They provide a means for businesses to give cash back to shareholders in addition to dividends, and they typically follow a company's stock rising as shares become more scarce.
After announcing in late March 2023 that former CEO Sergio Ermotti will take on a second term as CEO, UBS has begun on the enormous challenge of integrating Credit Suisse's operations.
Following his unexpected comeback, figures released this week revealed that Ermotti made 14.4 million Swiss francs ($15.9 million) in 2023. Due to integration costs, the bank posted a quarterly loss in February for the second time in a row, but underlying operating earnings were solid.
This year, shares have increased by more than 6%.

Christopher J. Mitchell

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