Integration Phase
UBS has completed the initial phase of integrating Credit Suisse, a significant step in combining the two major banks.
Financial Performance
Despite incurring integration costs, UBS is experiencing positive results, primarily from net new asset flows.
In Q4, the world’s largest wealth manager reported a net loss of $279 million, slightly lower than the anticipated loss of $285 million.
Share Buybacks and Dividend
UBS plans to resume share buybacks in the second half of 2024, allocating up to $1 billion for this purpose.
A proposed dividend of $0.70 per share for 2023 has been suggested, indicating a 27% increase.
Financial Targets and Goals
Key financial targets have been affirmed, and new objectives have been introduced.
The wealth management arm aims to reach $5 trillion of invested assets by 2028.
UBS is targeting net new assets of $200 billion annually into the bank by 2028.
Leadership Perspective
UBS CEO Sergio Ermotti expresses confidence in achieving sustainable long-term growth and higher returns through enhanced scale and capabilities.
Cost Savings and Share Price
UBS aims for $13 billion in cost savings by the end of 2026, with half of this target expected to be achieved by the end of 2024.
Despite challenges in integrating two major banks, UBS’s share price has risen by approximately 50% since the takeover announcement.
Challenges and Migration
Despite successful integration progress, challenges persist in merging IT systems and legal entities.
The migration of Credit Suisse clients will commence, starting with clients in Singapore, Hong Kong, and Luxembourg.
Client Trust and Assets
Clients have entrusted UBS with $77 billion of net new assets since the announcement of the acquisition of Credit Suisse, indicating a positive reception from clients.