Factbox-UBS' targets as it absorbs Credit Suisse
Reuters
Published Feb 06, 2024 09:20
ZURICH (Reuters) - UBS said on Tuesday it would resume share buybacks and raised its cost-saving targets as it announced it had completed the first phase of integrating its fallen rival Credit Suisse (SIX:CSGN).
The Swiss banking giant bought Credit Suisse in an emergency rescue last March. The biggest banking deal since the 2008-2009 financial crisis will entail job losses and extensive cost-cutting.
COST SAVING
UBS on Tuesday revised upwards the amount of cost savings it expects from the deal to $13 billion by end-2026, up from a previous target of over $10 billion.
JOB CUTS
UBS said last August it would cut at least 3,000 jobs in Switzerland.
While not providing any overall update on expected job cuts, UBS said on Tuesday headcount at group level had shrunk to 112,842 employees at the end of 2023, down from 120,000 after the merger.
PROFITABILITY TARGET
UBS targets around 15% underlying return on common equity tier 1 (ROCET1) by year-end 2026, and aims to deliver around 18% reported ROCET1 in 2028.
SHAREHOLDER PAYOUTS
UBS plans to restart share buybacks in the second half of the year, with up to $1 billion anticipated for 2024. It also hiked its divided.
INFLOWS
UBS CEO Sergio Ermotti said clients had handed the bank $77 billion of net new assets since the Credit Suisse merger.
WEALTH MANAGEMENT
The bank said on Tuesday its wealth management arm would target invested assets of $5 trillion by 2028 from $3.85 trillion currently.
REVENUES
Group revenues were $10.855 billion in the fourth quarter.
NET LOSS
UBS reported reported a loss of $279 million attributable to shareholders in the fourth quarter, less than the expected loss of $285 million forecast by analysts in a company-provided poll.
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Written By: Reuters
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