UBS Announces $2 Billion Share Repurchase Program, Expects $1 Billion Buyback This Year

UBS Announces $2 Billion Share Repurchase Program

On Tuesday, UBS revealed a new share repurchase program totaling up to $2 billion. The bank plans to allocate up to $1 billion for the repurchase to be carried out within the current year. This initiative is part of the bank's strategy following its merger with Credit Suisse AG, expected to be finalized by the end of the second quarter of 2024. UBS stated, "As previously communicated, in 2024 we expect to repurchase up to USD 1bn of our shares, commencing after the completion of the merger of UBS AG and Credit Suisse AG which is expected to occur by the end of the second quarter."

Ambitious Share Repurchase Goals

Furthermore, UBS has set an ambitious target for its share repurchases, aiming for these repurchases to surpass their pre-acquisition level by 2026.

Completion of 2022 Buyback

The newly announced program comes on the heels of the successful completion of the 2022 buyback, which saw UBS purchase 298.5 million of its shares. This represented 8.62% of its stock, amounting to $5.2 billion.

Understanding Buybacks

Buybacks, such as the one initiated by UBS, are carried out by companies to buy back their own shares from the stock market, thereby reducing the number of shares held by investors. This can result in an increase in stock value as the shares become scarcer. Additionally, these buybacks serve as a means for companies to provide returns to shareholders, along with dividends.

This article will be updated as more information becomes available.