UBS Signals Potential Return to Share Buybacks
- Bank considers shifting balance between dividends repurchases
- Wants payout ratio more in line with bank’s U.S. peers
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UBS Group AG Chief Executive Officer Sergio Ermotti is looking at more share buybacks as a way to reward investors while keeping flexibility during the economic uncertainty caused by the coronavirus pandemic.
The Swiss bank signaled the worst hit of the crisis on its balance sheet may already be over, raising the prospect that shareholder payouts will resume as early as next quarter after freezing returns under pressure from regulators. Ermotti said the bank is ready to reduce its dividend payout level, the highest on Wall Street, as it seeks greater control over what it pays and when.