Swiss banking giant UBS has unveiled a new share repurchase program worth up to $2 billion, with $1 billion slated for this year.
Program Details:
The bank intends to repurchase up to $1 billion of its shares in 2024, following the merger of UBS AG and Credit Suisse AG, expected by the end of the second quarter.
Post-Merger Ambitions:
UBS aims for share repurchases to surpass pre-acquisition levels by 2026, showcasing confidence in its post-merger strategy.
Previous Buyback Success:
The 2022 buyback saw UBS purchase 298.5 million shares, equivalent to 8.62% of its stock and valued at $5.2 billion.
Purpose of Buybacks:
Buybacks reduce the number of shares available in the market, providing a way for companies to return cash to shareholders and often resulting in stock price appreciation.
Integration Challenges:
UBS faces the challenge of integrating Credit Suisse’s business, with former CEO Sergio Ermotti returning for a second term to oversee the process.
Ermotti’s Compensation:
Ermotti earned 14.4 million Swiss francs ($15.9 million) in 2023, following his return, amid ongoing integration costs.
Financial Performance:
Despite integration expenses, UBS reported strong underlying operating profits, indicating resilience amid challenges.
Stock Performance:
Shares of UBS have risen by over 6% since the beginning of the year, reflecting investor confidence.
Subscribe to Follow Global Trends for daily global news. To Advertise, send a mail to advertise@followglobaltrends.com
Credit: Doris Chinwe Omemgbeoji