UBS Shares Have Risen Since Credit Suisse Deal
The bank confirmed previously announced plans to repurchase US$1 billion of shares this year as part of the new program. Its shares were little changed in early morning trading in Zurich.
UBS also said its 2022 share repurchase program concluded on March 28. It halted that US$5 billion share buyback program in April last year amid the government-backed takeover of its former rival.
See also: CDL to undertake off-market purchase of preference shares; makes offer at 78 cents apiece
The lender announced a restart of buybacks in February, signalling confidence over its integration with Credit Suisse. At the same time, the bank has posted two quarterly losses in a row as it grappled with the integration task.
Since closing the takeover of Credit Suisse in June, UBS has outlined major targets for the integration of its former rival including around US$13 billion in cost savings, a boost from about US$10 billion previously announced. The bank also confirmed its profitability targets through 2026.
Both Chief Executive Officer Sergio Ermotti, who returned to lead UBS last year, and Chairman Colm Kelleher have warned that 2024 will be a more difficult year in terms of keeping costs down. The bank said it expects to complete the merger by the end of the second quarter.
Last month, the Swiss lender announced that it cut its bonus pool for 2023 by 14% despite record annual profit driven by the acquisition of Credit Suisse. The bonus allocation was a reflection of the impact from challenging operating conditions and market volatility, the bank said.
Ermotti received a total compensation of around US$16 million, making him the best-paid European bank CEO.
