UBS Unveils $2 Billion Stock Buyback Plan for 2025-2026 to Boost Shareholder Value
UBS Group announces a strategic $2 billion stock repurchase initiative over the next two years, aiming to enhance shareholder returns post-Credit Suisse acquisition.
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Highlights
- UBS Group reveals plans to repurchase up to $2 billion of its shares between 2024 and 2026.
- The initial $1 billion buyback will commence following the anticipated completion of UBS's acquisition of Credit Suisse by the end of Q2 2024.
- UBS aims to surpass pre-acquisition share repurchase levels by the year 2026, reinforcing its commitment to shareholder value.
UBS Group AG, headquartered in Zurich, has officially launched a $2 billion stock buyback program set to span the next two years. This initiative marks a significant step in UBS's strategy to strengthen its capital structure and reward investors.
The financial powerhouse plans to initiate the first $1 billion tranche of share repurchases immediately after finalizing its merger with Credit Suisse, expected by the close of the second quarter of 2024.
UBS completed its previous repurchase program on March 28, 2024, having bought back $5.2 billion worth of shares, equivalent to 8.62% of its registered share capital at that time.
Looking ahead, UBS is committed to increasing its share buyback volume beyond the levels seen before acquiring Credit Suisse, targeting this milestone by 2026.
The acquisition of Credit Suisse, orchestrated by Swiss regulators in March 2023, was a critical move to stabilize the financial sector following years of challenges faced by Credit Suisse, including scandals and financial difficulties. This government-backed rescue aimed to prevent systemic risks within the banking industry.
As of midday ET on Tuesday, UBS shares showed minimal change, reflecting steady investor sentiment amid these strategic developments.
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