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UBS beats earnings expectations, declares as much as $1 billion share buyback

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Fabrice Coffrini | Afp | Getty Photos

Swiss banking big UBS on Tuesday narrowly beat fourth-quarter earnings expectations and introduced that it could recommence share buybacks value as much as $1 billion within the second half of the 12 months.

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The group posted a web loss attributable to shareholders of $279 million for the quarter, its second consecutive loss as a result of prices of integrating fallen rival Credit score Suisse. Nonetheless, analysts polled by LSEG had anticipated a wider web lack of $372 million.

Together with the share buybacks, UBS plans to suggest a dividend per share of $0.70, up 27% year-on-year.

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Within the third quarter, UBS had posted a bigger-than-expected net loss attributable to shareholders of $785 million — which factored in $2 billion in bills associated to the combination of fallen rival Credit score Suisse.

After that third quarter report, the market selected to deal with the financial institution’s sturdy underlying working revenue earlier than tax, which was properly forward of expectations. For the fourth quarter, that got here in at $592 million.

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UBS has additionally reported a faster than anticipated return of shopper inflows to Credit score Suisse’s wealth administration enterprise for the reason that takeover, which it completed in June 2023.

The combination of its stricken rival continues, with UBS embarking on a process of cutting around 3,000 Credit Suisse jobs as a part of the broader restructure.

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UBS introduced on Tuesday that it had accomplished the primary section of the strategic integration, and that the complete merger is predicted to be accomplished by the top of the second quarter.

“Due to the distinctive efforts of all of our colleagues, we stabilized the franchise and have made great progress within the integration,” UBS CEO Sergio Ermotti mentioned in an announcement.

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“As well as, purchasers entrusted us with USD 77 billion of web new belongings for the reason that acquisition and relied on our recommendation in a difficult geopolitical and macroeconomic atmosphere.”

UBS shares have made an detached begin to 2024, closing Monday’s commerce down 1.5% for the reason that flip of the 12 months.

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Listed here are another highlights:

  • Whole group revenues have been $10.86 billion, down from $11.7 billion within the third quarter.
  • CET1 capital ratio, a measure of financial institution liquidity, was 14.5%, in comparison with 14.4% the earlier quarter.
  • Internet new belongings within the flagship International Wealth Administration have been $77 billion, whereas web new deposits throughout GWM and the non-public and company banking division additionally totaled $77 billion, since closing the Credit score Suisse acquisition in 2023.
  • For the fourth quarter, GWM web new belongings have been $21.8 billion.

That is breaking information story, please examine again later for extra.

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