The value of UBS shares turned out to be on a downward trajectory after this lender published its results for the fourth quarter of 2024 and disappointing $3 billion share buyback plans.
The revenue of the mentioned financial institution, which is the largest bank in Switzerland, for the specified period was recorded at the $11.63 billion mark. This indicator showed an increase of 7% year-on-year. At the same time, analysts surveyed by LSEG predicted that the financial institution’s revenue for the fourth quarter of 2024 would be fixed at the $11.64 billion mark.
The bank’s net profit attributable to shareholders for the mentioned period amounted to $770 million. Analysts surveyed by LSEG predicted that this figure would reach $886.4 billion.
The financial institution also announced plans to repurchase shares worth $1 billion in the first half of 2025 and another $2 billion in the second half of the current year. At the same time, it was noted that the mentioned goal depends on some factors. In this case, it means the lender achieving its financial targets and the absence of material and immediate changes to the current capital regime in Switzerland.
The bank also proposes a $0.90-per-share dividend for the 2024 financial year, up 29% year-on-year.
After the information about UBS’s results for the fourth quarter of 2024 was published, the value of lender shares fell by 5.57%. It is worth noting that in this case, the factor impacting the indicator was primarily not the reporting for the last quarter, but also the intentions related to the repurchasing of the bank’s securities.
Deutsche Bank analysts said that UBS showed solid results for the fourth quarter of 2024. They noted that the divisional mix could have been better. In this context, the performance of the Personal & Corporate Banking unit was mentioned, which grew by 8% in the fourth quarter of last year.
Citi analysts, commenting on the results of UBS’s activities for the last quarter of 2024, stated that on balance a decent set of results, but perhaps not as good as at first glance.
As we have reported earlier, UBS Boss Warns Against Excessive Banking Regulation.
