UBSG: UBS Posts $279M Loss as Credit Suisse Acquisition Leads to Digestive Problems

Megabank announced a share buyback program and said it will hand as much as $1 billion to shareholders in the second half of the year.

• UBS stock UBSG lost 3% out of the gate on Tuesday after the megabank posted its second straight losing quarter following a $785 million loss in the third quarter. For the December quarter, the bottom line came in at a net loss of $279 million as the big-size Credit Suisse acquisition continued to upset the wealth manager’s digestive system.
• The Swiss banking heavyweight attempted to assuage investors’ concerns and put forward a share buyback program. In the second half of the year, UBS plans to roll out share buybacks worth up to $1 billion. Along with the repurchases, the giant lender eyes a 27% increase in dividend to $0.70 per share.
• While the mega merger is expected to wrap up by the end of June, clients are confidently flocking to UBS. In the fourth quarter, CEO Sergio Ermotti said, net new assets swell by $77 billion. Shares of UBS, traded on Zurich’s SIX Swiss Exchange, have moved little this year to float right at the flatline.