By Helena Smolak


UBS Group posted its second quarterly net loss in a row, hit by expenses related to its takeover of Credit Suisse, but plans to restart share buybacks this year after completing the first integration phase of the deal.

The Swiss bank said Tuesday that it reported a net loss of $279 million in the three months to the end of December. This was narrower than the net loss of $785 million the quarter before, but compared with a net profit of $1.65 billion in the same period a year earlier.

Revenue was $10.855 billion compared with $8.03 billion in the fourth quarter of 2022.

The Zurich-based bank beat analysts' estimates of a net loss of $285 million but missed analysts' estimates of a revenue at $11.04 billion, according to consensus figures provided by the bank.

The company said it had completed the first phase of the strategic integration of its once-rival Credit Suisse and that it plans to reinstate share buybacks, distributing up to $1 billion to shareholders in the second half.

The repurchase will commence after the legal merger of subsidiaries UBS AG and Credit Suisse AG by the second quarter of 2024, with the aim of surpassing pre-takeover levels by 2026. UBS last year paused a $5 billion buyback after the Credit Suisse deal.

Along with the share buyback, the Swiss bank increased its 2026 cost-saving goal to $13 billion.

As part of its three-year strategic plan, UBS backs its return on equity target--a key profitability metric for banks- of around 15% to end 2026. Executives still expect the cost-to-income ratio to fall below 70% at the end of 2026.

UBS booked $21.8 billion in net new assets into its global wealth management business in the fourth quarter, it said.

The company said it would propose a dividend of $0.70 a share for 2023, up from $0.55 the year prior.


Write to Helena Smolak at helena.smolak@wsj.com


(END) Dow Jones Newswires

02-06-24 0205ET