UBS Shares Decline Following Disappointing Fourth-Quarter Results

UBS shares in Zurich experienced a nearly 3% decline following the Swiss lender’s fourth-quarter earnings report, which failed to meet the expectations set by Wall Street analysts. Despite announcing plans to increase its dividend per share and reinstate share buybacks for the current year, investors expressed concern over the bank’s performance.

The Zurich-based bank reported a net loss of $279 million for the fourth quarter, marking its second consecutive quarterly loss since its emergency acquisition of rival Credit Suisse. However, analysts surveyed by LSEG had anticipated a wider net loss of $372 million.

The acquisition of Credit Suisse by UBS last March was orchestrated by Swiss authorities during the regional bank meltdown in the US. This move, aimed at averting a potential global banking crisis, saw UBS take over Credit Suisse for $3 billion, making it the largest deal of its kind. The acquisition transformed UBS into a $1.7 trillion entity overnight.

In its latest announcement, UBS disclosed plans for deeper cost-cutting measures, projecting a total reduction of $13 billion in expenses by the end of 2026. This figure represents a $3 billion increase from the estimate provided six months earlier, indicating the bank’s commitment to streamlining its operations and improving its financial outlook.