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UBS introduced plans for a $3 billion buyback Wednesday and posted fourth-quarter income that beat analysts’ forecasts.
The Swiss banking big mentioned it goals to buyback at the very least $3 billion of shares in 2026, including that it goals to do extra.
Internet revenue attributable to shareholders rose 56% year-on-year to $1.2 billion within the closing three months of the 12 months. That was increased than analysts’ estimates of $919 million.
Total, its group revenues have been $12.1 billion for the ultimate quarter of the 12 months, which was consistent with the $12.1 billion forecast by analysts. It was additionally down from $12.8 billion within the earlier quarter, and up from $11.6 billion for a similar interval a 12 months in the past.
UBS.
In the meantime, UBS’ frequent fairness tier (CET) 1 capital ratio — a gauge of a financial institution’s solvency — was 14.4% for the fourth quarter, in comparison with 14.8% within the earlier quarter.
CEO Sergio Ermotti — who’s getting ready to step down from his function as head of Switzerland’s largest lender in April subsequent 12 months as soon as its absorption of Credit score Suisse is concluded — mentioned the financial institution’s group invested property now exceed $7 trillion for the primary time.
“We maintained a robust capital place and delivered on our capital return commitments within the 12 months with an elevated dividend complemented by share repurchases,” he mentioned in a press release. “We’re poised to realize our 2026 exit price targets and medium-term ambitions.”
Ermotti, who returned to the helm in 2023 to supervise the government-led emergency takeover of the UBS’ stricken Swiss rival, added that the financial institution made “nice progress” on “probably the most complicated integrations in banking historical past.”
Johann Scholtz, senior fairness analyst at Morningstar, mentioned the fourth-quarter earnings have been one other robust set of outcomes for the financial institution.
Talking with CNBC’s “Europe Early Version” on Wednesday, Scholtz mentioned UBS executed nicely on the Credit score Suisse integration, however cautioned that there stays “a little bit of an overhang” on the financial institution’s share worth from Switzerland’s capital necessities guidelines.
