© Reuters. FILE PHOTO: The logo of Swiss bank UBS is seen at a branch office in Zurich, Switzerland, June 22, 2020. REUTERS / Arnd Wiegmann / File Photo
ZURICH (Reuters) -UBS Group AG plans to raise its dividend 10% to $0.55 per share and expects share buybacks in 2022 to exceed $5 billion, the Swiss bank said on Thursday. Tuesday.
“UBS will adjust the accrual for the 2022 common dividend from $0.51 to $0.55 per share – up 10% year over year,” it said in a statement, the board. Directors intend to propose a dividend at the 2023 annual meeting.
“Additionally, UBS expects share buybacks to exceed its $5 billion target for 2022. As of September 9, 2022, UBS has repurchased $4.1 billion in stock,” it said.
The bank said it will issue guidance on payback next year with fourth-quarter earnings and expects “continued share buybacks and progressive dividends”.
UBS shares rose 1.2% in pre-market activity after ZKB analyst Michael Klien called the news a surprise.
“We assume that this increase is related to the amount of capital released as a result of the termination of the Wealthfront acquisition,” he wrote in a research note.
UBS and Wealthfront this month said they had agreed to terminate UBS’s $1.4 billion acquisition of the automated wealth management service provider.
ZKB noted that the higher payout gave UBS a dividend yield of 3.4% at Monday’s closing price, slightly below the European average but slightly above the consensus of $0.53/share.