UBS begins Tuesday to buy the equivalent of 1.6 billion francs from its own titles to support the course of its action. This operation will lead to a decrease in the capital of the bank, even though the Federal Council asks it to do the opposite.
UBS plans to buy for three billion dollars of its own shares this year. It has already spent a billion in the first half and wants to take another two billion (1.6 billion francs) over the next six months. The titles bought are then canceled.
This, despite the recommendations of the Federal Council, announced in early June. The government wants the bank to put more capital aside to better resist crises. This requirement must still pass by Parliament and UBS is firmly opposed to it. For her, the amounts of these additional equity, which could rise between 20 and 25 billion, are exaggerated.
Plan implemented
Above all, UBS does not want to change its strategy, which had been voted by the General Assembly last April, and wants to support the course of its action, which stagnated over a year and even fell by 5.7% since the start of the year, while many of its competitors display increases.
It therefore plans to buy up to two billion by the end of the year, just under 2% of its capital.
Before the Federal Council asked him to put more capital aside, UBS intended to resume share acquisitions up to those she was doing before the resumption of Credit Suisse in 2023. The previous year, for example, she had spent $ 5.6 billion.
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Mathilde flour
