The cost of absorbing Credit Suisse led to a net loss of $279m in Q4 2023, according to the bank’s results published today (6 February).
Sergio Ermotti, CEO of UBS, described 2023 as “a defining year in UBS’s history with the acquisition of Credit Suisse” and thanked the efforts of his staff to “stabilise the franchise”, adding it has made “tremendous progress in the integration” of the two firms.
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Part of this next stage of the merger for UBS is the return of a share buyback programme in the second half of 2024, with up to $1bn designated for the repurchases, according to the results.
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This is set to begin after the completion of UBS and Credit Suisse merger, which is expected to complete by the end of Q2 2024. Alongside the buyback plan, UBS is focused on building progressive dividends and accruing funds for a mid-teen percentage increase in the dividend per share for 2024.
UBS said its ambition was for 2026’s share repurchases to exceed FY22 levels.
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The bank is also targeting $13bn of cost cuts by the end of 2026, having previously targeted $10bn. Around half of these reductions are expected to be met in 2024.
Ermotti said: “While our progress over the next three years will not be measured in a straight line, our strategy is clear.
“With enhanced scale and capabilities across our leading client franchises and improved resource discipline, we will drive sustainable long-term growth and higher returns.
“By the end of 2026 and beyond, this will allow us to deliver significant value for all our stakeholders and remain a reliable economic partner, employer and taxpayer in the communities where we operate.”
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