Banks UBS CEO: Share buybacks dependent on "too big to fail" decisions

UBS CEO Sergio Ermotti is also making further share buybacks dependent on possible stricter capital requirements. The political decisions on the "too big to fail" regulation (TBTF) could also influence the return of capital to shareholders.

He said this at a Bank of America industry conference on Tuesday. With the results for the fourth quarter, the big bank intends to communicate its further plans for capital reduction. UBS plans to present its figures on February 4, 2025.

A share buyback program of USD 2 billion is currently running until April 2026 at the latest, and he expects the progressive distribution to continue, said Ermotti.

He did not want to speculate on the outcome of the current discussions about stricter capital requirements for the combined bank of UBS and the former CS, Ermotti continued, although he understood that the market wanted more clarity.

UBS cannot make any demands either, but can only present and explain the facts. The bank also has no influence on the timing. However, he expects news at the end of the year or the beginning of next year.

CS integration on track

Meanwhile, UBS is on track with the CS integration, the CEO confirmed earlier statements. In terms of cost savings, for example, the bank is even "six months ahead of schedule", said Ermotti.

By the end of 2026, the bank aims to reduce costs by 13 billion dollars compared to the combined costs of UBS and CS at the end of 2022. However, no major savings will be seen before 2025, as the Group will continue to operate two banks in parallel. CS IT could only be shut down in 2026.

SDA