UBS to Launch New Buyback of Up to $4.5 Billion
January 26 2021 - 1:50AM
Dow Jones News
By Pietro Lombardi
UBS Group AG will restart buying back its shares and announced a
new buyback program of up to $4.5 billion, after the bank closed
2020 with a consensus-beating quarterly performance.
The world's largest wealth manager by assets has weathered the
coronavirus pandemic storm better than many of its peers, helped by
strong customer activity in its investment bank and its vast
wealth-management operations. It has already set aside $2 billion
for buybacks.
UBS said Tuesday that it will launch a new three-year buyback
program in the first quarter of up 4 billion Swiss francs ($4.5
billion). Including the conclusion of the existing program, the
bank plans to repurchase up to $1.1 billion of shares in the first
three months of the year.
The bank also said it would propose a dividend of $0.37 a share
for last year.
Swiss bank UBS has met or beat all its financial targets for
last year. Its quarterly profit more than doubled in the last three
months of the year to $1.71 billion from $722 million a year
earlier. Analysts had forecast profit of $966 million.
Operating income rose 15% to $8.12 billion.
"Our strong 2020 results clearly demonstrate the true strength
of our franchise," Chief Executive Ralph Hamers said.
The buyback was a key focus going into the results, the first
under Mr. Hamers, who became CEO in November.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
January 26, 2021 01:35 ET (06:35 GMT)
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