O UBS decided to suspend its share buyback plan following the announcement of the rival’s purchase Credit Suisse for 3 billion Swiss francs, about $3.25 billion. The bank’s dividend distribution policy, however, will be kept intact, according to the chairman of the UBSColm Kelleher.
“It is a historic day. At Switzerland it is a day that, frankly, we hoped would not come”, he said, when starting a conference call with analysts to comment on the purchase of the Credit Suissethis Sunday.
Kelleher reinforced that, despite the acquisition of Credit, the UBS remains “firmly committed” to its organic growth strategy. He said that several events in recent weeks had urged UBS to consider an acquisition of Credit Suisseprompted by regulatory bodies in Switzerland, to preserve global financial stability.
As a result of the acquisition, he announced that in the short term, it will result in the temporary suspension of UBS’ share buyback program. “Although our progressive dividend policy remains intact,” added the bank’s chairman.
Kelleher further stated that although the UBS has not started discussions with the credit, the bank considers the transaction “financially attractive” for its shareholders. According to him, the transaction was set up in a way that will protect the bank from further losses and should support earnings growth over time, and the terms of the transaction have the full support of relevant regulators and ensure financial stability. for all our stakeholders.
“This includes very significant liquidity support provided by the Swiss National Bank,” he added.
Source: Moneytimes
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