On Tuesday, UBS (UBSG.S) announced the completion of the first phase of integrating its fallen rival, Credit Suisse. The bank is currently benefiting from net new asset flows. Additionally, UBS intends to resume share buybacks in the second half of the year, with plans to allocate up to $1 billion in 2024.
“With enhanced scale and capabilities across our leading client franchises and improved resource discipline, we will drive sustainable long-term growth and higher returns,” Sergio Ermotti, the company’s CEO, said in a statement.
The world’s largest wealth manager reaffirmed key financial targets. Additionally, it set new goals, including aiming for its wealth management arm to have $5 trillion in invested assets by 2028.
UBS also stated that it hoped to see $200 billion in net new assets flow into the bank each year by 2028.
Ermotti stated that clients had entrusted the bank with $77 billion in net new assets since the acquisition.
UBS also revealed that it aimed to save $13 billion in costs by the end of 2026, with half of that coming by the end of this year.
Since the shotgun takeover was announced last March, marking the first-ever merger of two global systemically important banks, UBS has managed to avoid major turbulence. Consequently, its share price has risen by about 50%.
However, it must still deal with some of the more difficult aspects of integrating the two banks, such as combining their separate IT systems and legal entities.
The bank will also begin migrating Credit Suisse clients, starting with Singapore, Hong Kong, and Luxembourg.
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