Latest news with #ColmKelleher
Bloomberg
2 days ago
- Business
- Bloomberg
UBS Vows to Stand By Strategy After Swiss Capital Demands
UBS Group AG said it won't change it's strategy after the Swiss government proposed strict new rules that could see the bank hold up to $26 billion in fresh capital. 'We will not back down from our globally diversified business model, which makes us safer and more resilient, especially during turbulent times like these,' Chairman Colm Kelleher and Sergio Ermotti, the firm's chief executive officer, wrote in a memo to staff seen by Bloomberg.
Yahoo
2 days ago
- Business
- Yahoo
UBS buybacks may be hit by new capital rules: government
ZURICH (Reuters) -UBS may be able to carry out fewer share buy-backs in future following proposals that it should hold higher levels of core capital, the Swiss government said on Friday. The government proposed higher capital requirements for the lender's foreign units as part of wide-ranging new rules for UBS aimed at making Switzerland's financial centre more robust in the wake of the collapse of Credit Suisse in 2023. Dividend payments and organic growth should still be possible, subject to "appropriate transitions periods and provided profits have been generated," the government said. "The measure could mean that UBS will temporarily implement fewer share buybacks and reports a slightly lower return on equity along with lower risks," the government said in a statement. UBS Chairman Colm Kelleher in April reiterated the Swiss bank's intention to repurchase shares to the tune of $3 billion in 2025, despite the looming capital rule changes and global economic uncertainty. The growth of foreign subsidiaries or acquisition of foreign companies by UBS will still be possible, but will become more expensive because it has to be fully financed by the core capital, the government added. "The measure can therefore make foreign growth in subsidiaries more expensive," it added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
UBS buybacks may be hit by new capital rules: government
ZURICH, June 6 (Reuters) - UBS (UBSG.S), opens new tab may be able to carry out fewer share buy-backs in future following proposals that it should hold higher levels of core capital, the Swiss government said on Friday. The government proposed higher capital requirements for the lender's foreign units as part of wide-ranging new rules for UBS aimed at making Switzerland's financial centre more robust in the wake of the collapse of Credit Suisse in 2023. Dividend payments and organic growth should still be possible, subject to "appropriate transitions periods and provided profits have been generated," the government said. "The measure could mean that UBS will temporarily implement fewer share buybacks and reports a slightly lower return on equity along with lower risks," the government said in a statement. UBS Chairman Colm Kelleher in April reiterated the Swiss bank's intention to repurchase shares to the tune of $3 billion in 2025, despite the looming capital rule changes and global economic uncertainty. The growth of foreign subsidiaries or acquisition of foreign companies by UBS will still be possible, but will become more expensive because it has to be fully financed by the core capital, the government added. "The measure can therefore make foreign growth in subsidiaries more expensive," it added.
Wall Street Journal
10-04-2025
- Business
- Wall Street Journal
UBS Chair Says Swiss Regulator, Central Bank Demands Amount to 50% Capital Hike
UBS Group Chair Colm Kelleher said Switzerland's financial regulator and central bank set out additional capital requirements that would lead to a 50% increase compared with current levels. Swiss authorities have been working over the past year to reform of the country's 'too big to fail' banking laws in the wake of Credit Suisse's rescue takeover by UBS, a move that is widely expected to result in higher capital demands for UBS.
Reuters
10-04-2025
- Business
- Reuters
UBS sticks to $3 billion share buyback plan despite capital changes, global uncertainty
Summary Companies UBS sticks to share buyback plan of up to $3 billion in 2025 in the absence of major changes to capital rules Proxy adviser says buybacks are provocation in current political context 2025 will be very challenging for markets with much uncertainty, UBS says LUCERNE, Switzerland, April 10 (Reuters) - UBS (UBSG.S), opens new tab Chairman Colm Kelleher on Thursday reiterated the Swiss bank's intention to repurchase shares to the tune of $3 billion in 2025, despite looming capital rule changes and global economic uncertainty. The bank plans to repurchase $1 billion in shares in the first half of 2025 and up to an additional $2 billion in the second half of the year. here. "In the absence of any significant, immediate changes to the current capital regime, we remain committed to returning capital to our shareholders," Kelleher said at the bank's annual general meeting in Lucerne, Switzerland. Proxy adviser Ethos opposed the buyback plans, describing them as a provocation in the current political context and arguing that capital should be reserved for stability. "We consider capital destruction inappropriate and urge the board to stop its buyback activities, which only benefit the variable remuneration of our executives and some short term oriented investors," Ethos Foundation CEO Vincent Kaufmann said in a speech at the AGM. The Swiss government is due to present a proposal on new capital rules in early June, aimed at strengthening financial stability and preventing future crises such as the 2023 collapse of lender Credit Suisse, which was acquired by UBS in an emergency takeover that year. While emphasising the bank's Swiss roots and its "long-standing partnership" with Switzerland, Kelleher cautioned against stronger Swiss capital rules, calling overregulation "a very big risk to the long-term success of UBS." "UBS is already hampered by the existing regulatory Swiss finish," he said. "Adding another Swiss finish on top – while other financial centres are easing regulations – would harm UBS, the Swiss financial centre and the broader economy." Swiss finish refers to Swiss capital requirements and other regulations that are more stringent than in other jurisdictions. 2025 will be a very challenging year for markets, with much uncertainty, Kelleher added. "The global macroeconomic and geopolitical environment is less stable, as we observed over the last week," said UBS CEO Sergio Ermotti. The bank was moving towards fully integrating Credit Suisse while positioning itself for growth, Ermotti added, particularly in the Asia-Pacific and Americas regions.
