UBS decided to suspend its share buyback plan after the announcement of the purchase of rival Credit Suisse for 3 billion Swiss francs, about US$ 3.25 billion. The bank’s dividend distribution policy, however, will be kept intact, according to UBS chairman Colm Kelleher.
“It is a historic day. In Switzerland it is a day that, frankly, we hoped would not come,” he said, starting a conference call with analysts to comment on the purchase of Credit Suisse, this Sunday.
Kelleher reinforced that, despite the acquisition of Credit, UBS remains “firmly committed” to its organic growth strategy. He said several events in recent weeks had urged UBS to consider a takeover of Credit Suisse, prompted by Swiss regulators, 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 also said that although UBS has not started discussions with 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.
#UBS #suspends #share #buyback #plan #Credit #purchase #ISTOÉ #DINHEIRO