UBS Shares Fall After Q4 Results

UBS Group (NYSE:UBS) shares dropped more than 4% pre-market today following the announcement of its fourth-quarter 2023 results.

The Swiss bank reported a net loss of $279 million for the quarter, its second sequential quarterly loss, primarily due to expenses related to the integration of the failed Credit Suisse, though the loss was less than the $372 million analysts had anticipated. Its operating profit before tax stood at $592 million, missing the expected $762 million.

Looking ahead, UBS remains committed to reaching around a 15% underlying return on Common Equity Tier 1 (RoCET1) with an underlying cost-to-income ratio under 70% by 2026, aiming for a RoCET1 of about 18% by 2028.

UBS also targets approximately $13 billion in gross cost savings by 2026, with hopes to achieve half of these savings by the end of 2024.

Additionally, the bank is set to restart its share buyback program, allocating up to $1 billion for repurchases in the latter half of the year, and plans to propose a dividend of $0.70 per share, up 27% year-over-year.