Lucerne — UBS chair Colm Kelleher on Thursday reiterated the Swiss financial institution’s intention to purchase again as a lot as $3bn of its issued shares in 2025, regardless of looming capital rule modifications within the nation and world financial uncertainty.
The financial institution plans to repurchase $1bn in shares within the first half of 2025 and as a lot as $2bn within the second half of the yr.
“Within the absence of any important, rapid modifications to the present capital regime, we stay dedicated to returning capital to our shareholders,” Kelleher stated on the financial institution’s AGM in Lucerne.
Proxy adviser Ethos opposed the buyback plans, describing them as a provocation within the prevailing political context and stated capital must be reserved for stability.
“We take into account capital destruction inappropriate and urge the board to cease its buyback actions, which solely profit the variable remuneration of our executives and a few short-term oriented buyers,” Ethos Basis CEO Vincent Kaufmann stated on the AGM.
UBS shareholders accepted the proposed 2025 share buyback programme with 93.5% of votes forged on the assembly.
The Swiss authorities is because of current a proposal on new capital guidelines in early June, aimed toward strengthening monetary stability and stopping crises such because the 2023 collapse of lender Credit score Suisse, which was purchased by UBS in an emergency takeover that yr.
Whereas emphasising the financial institution’s Swiss roots and its “long-standing partnership” with Switzerland, Kelleher cautioned towards stronger capital guidelines, calling over-regulation “a really massive danger to the long-term success of UBS”.
“UBS is already hampered by the present regulatory Swiss end,” he stated. “Including one other Swiss end on high — whereas different monetary centres are easing rules — would hurt UBS, the Swiss monetary centre and the broader financial system.” Swiss end refers to Swiss capital necessities and different rules which can be extra stringent than in different jurisdictions.
The yr can be a really difficult yr for markets, with a lot uncertainty, Kelleher added.
“The worldwide macroeconomic and geopolitical setting is much less secure, as we noticed over the previous week,” stated UBS CEO Sergio Ermotti.
The financial institution was shifting in direction of absolutely integrating Credit score Suisse whereas positioning itself for development, Ermotti added, notably within the Asia-Pacific and Americas areas.
Reuters
