UBS Group AG
What Happened: UBS, based in Zurich, is initiating a new buyback program that will run for two years, starting on Apr. 3, Bloomberg reported. The bank aims to surpass its pre-acquisition buyback levels by 2026.
UBS is currently in the process of acquiring Credit Suisse, a move that the market has closely followed. The bank's new buyback plan is seen as a strategic move to reassure investors and provide them with a clearer picture of future returns amid this significant business development.
Why It Matters: The decision to initiate a new buyback program comes on the heels of UBS's strong performance and strategic moves in the market. Earlier in February, UBS announced a $1 billion share buyback following a better-than-expected fourth-quarter performance despite challenges related to the integration of Credit Suisse. This new $2 billion buyback plan further underscores UBS's confidence in its financial position and commitment to delivering value to shareholders.
The acquisition of Credit Suisse's investment bank venture in China by Jack Ma's Ant Group in February also sparked significant interest in UBS's future plans. The new buyback program could be viewed as a strategic move to solidify UBS's market position further and maintain investor confidence amid these major industry developments.