Fabrice Coffrini | Afp | Getty Images
Swiss banking large UBS on Tuesday narrowly beat fourth-quarter earnings expectations and introduced that it will recommence share buybacks value as much as $1 billion within the second half of the 12 months.
The group posted a internet loss attributable to shareholders of $279 million for the quarter, its second consecutive loss because of the prices of integrating fallen rival Credit Suisse. However, analysts polled by LSEG had anticipated a wider internet lack of $372 million.
Along with the share buybacks, UBS plans to suggest a dividend per share of $0.70, up 27% year-on-year.
In the third quarter, UBS had posted a bigger-than-expected internet loss attributable to shareholders of $785 million — which factored in $2 billion in bills associated to the combination of fallen rival Credit 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 nicely forward of expectations. For the fourth quarter, that got here in at $592 million.
UBS has additionally reported a faster than anticipated return of shopper inflows to Credit Suisse’s wealth administration enterprise because the takeover, which it accomplished in June 2023.
The integration of its stricken rival continues, with UBS embarking on a strategy of slicing round 3,000 Credit Suisse jobs as a part of the broader restructure.
UBS introduced on Tuesday that it had accomplished the primary part of the strategic integration, and that the total merger is anticipated to be accomplished by the top of the second quarter.
“Thanks to the exceptional efforts of all of our colleagues, we stabilized the franchise and have made tremendous progress in the integration,” UBS CEO Sergio Ermotti mentioned in an announcement.
“In addition, clients entrusted us with USD 77 billion of net new assets since the acquisition and relied on our advice in a challenging geopolitical and macroeconomic environment.”
UBS shares have made an detached begin to 2024, closing Monday’s commerce down 1.5% because the flip of the 12 months.
Here are another highlights:
- Total group revenues had 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.
- Net new belongings within the flagship Global Wealth Management had been $77 billion, whereas internet new deposits throughout GWM and the private and company banking division additionally totaled $77 billion, since closing the Credit Suisse acquisition in 2023.
- For the fourth quarter, GWM internet new belongings had been $21.8 billion.
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