UBS to Launch Share Buyback of Up to $2 Billion

• By 2026, we aim to surpass our pre-acquisition share repurchase level.
• After the 2022 buyback, which resulted in the purchase of 298.5 million shares, a new program was introduced.

On Tuesday, UBS announced a new share repurchase program worth up to $2 billion, with up to $1 billion of that amount expected to be executed this year.

The bank announced that it plans to repurchase up to USD 1bn of its shares in 2024, starting after the merger of UBS AG and Credit Suisse AG is completed by the end of the second quarter, as previously communicated.

"By 2026, we aim to surpass our pre-acquisition share repurchase level."

UBS reported that the new program was launched after the completion of the 2022 buyback, during which 298.5 million shares were purchased, representing 8.62% of its stock worth $5.2 billion.

The bank's 2022 share repurchase program concluded last month.

When companies buy back their own shares on the stock exchange, it reduces the number of shares held by investors. This process allows companies to return cash to shareholders, in addition to dividends, and typically occurs when a company's stock price is increasing, making shares more valuable.

UBS has taken on the challenge of integrating Credit Suisse's business, with former CEO Sergio Ermotti returning for a second term in late March 2023.

In 2023, Ermotti earned 14.4 million Swiss francs ($15.9 million) after returning unexpectedly, despite the bank reporting a second consecutive quarterly loss due to integration costs in February. Despite this, the bank continued to deliver strong underlying operating profits.

Shares are up more than 6% so far this year.

— CNBC's Elliot Smith contributed to this article.