UBS to buy back up to $6B of shares over two years

UBS Group AG said it will buy back as much as $6 billion of stock over the next two years as part of plans to boost shareholder returns after robust performance.

The Swiss lender expects to make up to $5 billion of repurchases under both the now-concluded 2021 and the new 2022 repurchase programs by the end of the year, according to a statement from the Zurich-based lender on Wednesday. The $5 billion target for 2022 was announced in February. The new $6 billion plan stretching into 2023 begins March 31.

Ralph Hamers, now in his second year as CEO, is giving investors more insight into his plans for the bank and boosting returns on the back of upgraded profit and efficiency targets. The bank is also revamping its digital offering by buying robo-advisor Wealthfront for $1.4 billion.

Many European lenders are increasing buybacks and their dividends after exiting the pandemic with lower loan losses than expected and benefiting from a surge in trading and deal-making.

Italian bank UniCredit SpA intends to return at least 16 billion euros ($18.1 billion) to shareholders by 2024, rolling out one of Europe’s most ambitious payout plans, while lenders such as Banco Bilbao Vizcaya Argentaria SA and BNP Paribas SA are also boosting payout targets.

Outgoing Chairman Axel Weber said on Tuesday that the bank has halted new business in Russia following the invasion of Ukraine and has been reducing its exposure to the country since January.

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