The UBS logo is seen on an office building in Krakow, Poland on February 22, 2024.
Jakub Borzicki | NoorPhoto | Good pictures
UBS announced a new share repurchase program of up to $2 billion on Tuesday, with a total of up to $1 billion expected to take place this year.
“As previously reported, in 2024, upon completion of the merger of UBS AG and Credit Suisse AG, which is expected to occur by the end of the second quarter, we expect to repurchase up to USD 1 billion of shares,” the bank said. In a statement.
“Our ambition is to repurchase shares above our pre-acquisition levels by 2026.”
The new plan follows the completion of the 2022 buyback, in which 298.5 million shares were purchased. That's 8.62% of its holdings, worth $5.2 billion, according to UBS.
The bank's 2022 share buyback plan ended last month.
Buybacks take place when companies buy their own shares on the stock market, reducing the portion of shares in the hands of investors. Stocks give companies a way to return money to shareholders — along with dividends — and typically when a company's stock moves higher, the stock is in short supply.
UBS has undertaken the monumental task of consolidating Credit Suisse's business, announcing in late March 2023 that former chairman Sergio Ermotti will take over as CEO for a second term.
Figures last week showed that Ermotti earned 14.4 million Swiss francs ($15.9 million) in 2023. The bank posted a second straight quarterly loss in February on the back of consolidation costs, but continued to deliver strong underlying operating profit.
Shares are up more than 6% so far this year.
— CNBC's Elliott Smith contributed to this article.
