UBS completes share repurchase program 2018 – 2021
UBS Group AG (SWX:UBSG) today announces that it has completed its three-year share repurchase program, launched on March 26, 2018.
In total, 156,632,400 UBS Group AG shares were repurchased via a separate trading line on the SIX Swiss Exchange as part of this share repurchase program, representing 4.06% of the current registered share capital of UBS Group AG. The total repurchase volume amounted to CHF 1,999,999,800.
UBS Group AG intends to propose that shareholders approve the cancellation of shares purchased under this program at the next Annual General Meeting of UBS Group AG on 8 April 2021.
Let’s recall that UBS commented on capital management when it reported its results for the final quarter of 2020.
For 2020, the Board of Directors intends to propose a dividend to UBS Group AG shareholders of USD 0.37 per share. Subject to approval by shareholders at the Annual General Meeting, the dividend will be paid on 15 April 2021 to shareholders of record on 14 April 2021. The ex-dividend date will be 13 April 2021.
The balance between cash dividends and share repurchases has been adjusted from 2020 onward, with a greater weight toward share repurchases as compared with prior years’ returns. UBS notes that it remains committed to returning excess capital to its shareholders and delivering total capital returns consistent with previous levels.
Before COVID-related restrictions on share repurchases were introduced, UBS repurchased CHF 350 million (USD 364 million) of its shares in the first quarter of 2020. During the fourth quarter of 2020, UBS also increased its capital reserve for future share repurchases from USD 1.5 billion to USD 2.0 billion.
In the first quarter of 2021, UBS is launching a new three-year program of up to CHF 4 billion, of which up to USD 1 billion is to be executed in the first quarter of 2021.