UBS Starts $3 Billion Buyback as It Counters Swiss Capital Push

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUBS Starts $3 Billion Buyback as It Counters Swiss Capital PushUBS Group AG announced a new $3 billion share buyback program to run until mid-2027, giving investors more clarity on payouts amid ongoing uncertainty over the bank’s future capital requirements.Author of the article:Myriam Balezou and Noele Illien You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — UBS Group AG announced a new $3 billion share buyback program to run until mid-2027, giving investors more clarity on payouts amid ongoing uncertainty over the bank’s future capital requirements.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe repurchase program, following a $3 billion plan completed this month, will start with at least $1 billion of buybacks over the next three months, the Zurich-based bank said Wednesday. UBS posted net income of $2.8 billion for the second quarter, beating expectations.UBS benefited in the period from a surge in trading activity that brought a record windfall to Wall Street peers, and brought in more new assets from wealth-management clients than expected. Robust earnings over successive quarters are helping UBS offset the effect on its share price of Switzerland’s capital debate which could see the bank forced to maintain billions of dollars in extra equity. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againIn its outlook, UBS sounded caution for the upcoming quarter against the backdrop of ongoing geopolitical uncertainty and volatile energy prices. At the same time, client activity remains “healthy,” it said.Net new money at the key Global Wealth Management division came in at $36 billion, compared with analyst estimates for $21 billion. Revenues at the investment bank jumped 26% driven by both trading and advisory, UBS said. UBS published a 28-page document setting out arguments relating to the Swiss capital debate which is working its way through the political system. The government wants to force UBS to raise the amount of common equity capital it holds domestically against its foreign operations to 100% of each unit’s equity value, from 60% at present. UBS estimates that this would require it to add about $22 billion in CET1 capital, and argues that would hurt its competitiveness.Earlier this month UBS took aim at the Swiss National Bank, contesting officials’ claim that UBS already can absorb the impact of the new regulations. In late April, the government watered down part of the reforms but refused to back down on its core demands. The package is now being debated in parliament and the process is expected to last until next year. Lawmakers look set to reduce the government’s proposals, but there’s also broad agreement that capital requirements should rise from their current levels. The committee responsible will meet again in August and could then formally propose easing.UBS shares hit record highs in mid-July, though gains have still lagged European peers. —With assistance from Isabel Demetz.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.