Swiss banking giant UBS reported a net loss attributable to shareholders of $279 million for the fourth quarter, attributed to integration costs related to fallen rival Credit Suisse. However, the loss was narrower than expected, with analysts predicting a wider loss of $372 million. UBS plans to recommence share buybacks worth up to $1 billion in the second half of the year and proposes a dividend per share of $0.70, marking a 27% YoY increase. Despite the challenges of integrating Credit Suisse, UBS reported a quicker-than-expected return of client inflows to Credit Suisse’s wealth management business since completing the takeover in June 2023. The bank stabilized its franchise, made progress in integration, and attracted $77 billion in net new assets post-acquisition. UBS CEO Sergio Ermotti highlighted the completion of the first phase of the strategic integration, acknowledging the efforts of colleagues in navigating the challenging geopolitical and macroeconomic environment.
Other key highlights include total group revenues of $10.86 billion, a CET1 capital ratio of 14.5%, and $77 billion in net new assets in the flagship Global Wealth Management. The net new deposits across Global Wealth Management and the personal and corporate banking division totaled $77 billion since the Credit Suisse acquisition in 2023. UBS shares have faced a lukewarm start to 2024, closing Monday’s trade down 1.5% since the beginning of the year.