UBS sticks to share buyback plan of up to $3 billion in 2025 in the absence of major changes to capital rules
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Proxy adviser says buybacks are provocation in current political context
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2025 will be very challenging for markets with much uncertainty, UBS says
(Adds Ethos Buy Proxy Servers adviser comments, paragraphs 4 and 5)
By Ariane Luthi
LUCERNE, Switzerland, April 10 (Reuters) - UBS Chairman Colm Kelleher on Thursday reiterated the Swiss bank's intention to repurchase shares to the tune of $3 billion in 2025, despite looming capital rule changes and global economic uncertainty.
The bank plans to repurchase $1 billion in shares in the first half of 2025 and up to an additional $2 billion in the second half of the year.
"In the absence of any significant, immediate changes to the current capital regime, we remain committed to returning capital to our shareholders," Kelleher said at the bank's annual general meeting in Lucerne, Switzerland.
Proxy adviser Ethos opposed the buyback plans, describing them as a provocation in the current political context and arguing that capital should be reserved for stability.
"We consider capital destruction inappropriate and urge the board to stop its buyback activities, which only benefit the variable remuneration of our executives and some short term oriented investors," Ethos Foundation CEO Vincent Kaufmann said in a speech at the AGM.
The Swiss government is due to present a proposal on new capital rules in early June, aimed at strengthening financial stability and preventing future crises such as the 2023 collapse of lender Credit Suisse, which was acquired by UBS in an emergency takeover that year.
While emphasising the bank's Swiss roots and its "long-standing partnership" with Switzerland, Kelleher cautioned against stronger Swiss capital rules, calling overregulation "a very big risk to the long-term success of UBS."
"UBS is already hampered by the existing regulatory Swiss finish," he said. "Adding another Swiss finish on top - while other financial centres are easing regulations - would harm UBS, the Swiss financial centre and the broader economy." Swiss finish refers to Swiss capital requirements and other regulations that are more stringent than in other jurisdictions.
2025 will be a very challenging year for markets, with much uncertainty, Kelleher added.
"The global macroeconomic and geopolitical environment is less stable, as we observed over the last week," said UBS CEO Sergio Ermotti.
The bank was moving towards fully integrating Credit Suisse while positioning itself for growth, Ermotti added, particularly in the Asia-Pacific and Americas regions. (Reporting by Ariane Luthi, Editing by Miranda Murray and Susan Fenton)
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Proxy adviser says buybacks are provocation in current political context
*
2025 will be very challenging for markets with much uncertainty, UBS says
(Adds Ethos Buy Proxy Servers adviser comments, paragraphs 4 and 5)
By Ariane Luthi
LUCERNE, Switzerland, April 10 (Reuters) - UBS Chairman Colm Kelleher on Thursday reiterated the Swiss bank's intention to repurchase shares to the tune of $3 billion in 2025, despite looming capital rule changes and global economic uncertainty.
The bank plans to repurchase $1 billion in shares in the first half of 2025 and up to an additional $2 billion in the second half of the year.
"In the absence of any significant, immediate changes to the current capital regime, we remain committed to returning capital to our shareholders," Kelleher said at the bank's annual general meeting in Lucerne, Switzerland.
Proxy adviser Ethos opposed the buyback plans, describing them as a provocation in the current political context and arguing that capital should be reserved for stability.
"We consider capital destruction inappropriate and urge the board to stop its buyback activities, which only benefit the variable remuneration of our executives and some short term oriented investors," Ethos Foundation CEO Vincent Kaufmann said in a speech at the AGM.
The Swiss government is due to present a proposal on new capital rules in early June, aimed at strengthening financial stability and preventing future crises such as the 2023 collapse of lender Credit Suisse, which was acquired by UBS in an emergency takeover that year.
While emphasising the bank's Swiss roots and its "long-standing partnership" with Switzerland, Kelleher cautioned against stronger Swiss capital rules, calling overregulation "a very big risk to the long-term success of UBS."
"UBS is already hampered by the existing regulatory Swiss finish," he said. "Adding another Swiss finish on top - while other financial centres are easing regulations - would harm UBS, the Swiss financial centre and the broader economy." Swiss finish refers to Swiss capital requirements and other regulations that are more stringent than in other jurisdictions.
"The global macroeconomic and geopolitical environment is less stable, as we observed over the last week," said UBS CEO Sergio Ermotti.
The bank was moving towards fully integrating Credit Suisse while positioning itself for growth, Ermotti added, particularly in the Asia-Pacific and Americas regions. (Reporting by Ariane Luthi, Editing by Miranda Murray and Susan Fenton)