UBS increased annual profit by 280% and resumed share buybacks – Kommersant

UBS Group presented financial report for the fourth quarter and all of 2023. According to the results of the last three months of last year, the banking group received a net loss of $279 million against $1.65 billion of net profit at the end of 2022. But that was the last quarter before UBS had to redeem Credit Suisse collapsing at the insistence of the Swiss authorities.

Earnings for the fourth quarter of 2023 were slightly worse than analysts’ expectations. The bank’s key wealth management division posted a pre-tax profit of $381 million, far worse than estimates of $1.07 billion.

UBS Group completed the entire year 2023 with net profit of $29 billion, which is 280% more than in 2022. And this despite an increase in operating costs by almost one and a half times compared to 2022. The nearly four-fold increase in annual net profit is due to the takeover of Credit Suisse, which was acquired at a huge discount compared to its market value. Negative goodwill amounted to $28.9 billion.

Finally, UBS Group management announced the resumption of its share repurchase program. In the second half of 2024, the banking group intends to buy up to $1 billion worth of shares on the market. The share buyback program has been frozen since the announcement of the Credit Suisse takeover.

Kirill Sarkhanyants