Swiss banking giant UBS Group (UBS) has announced a new $2 billion U.S. stock buyback program.
The Zurich-based lender said that up to $1 billion U.S. of its buyback will take place in 2024.
The new share repurchase program comes as UBS prepares to complete its merger with former rival Credit Suisse by the end of the current second quarter.
In a news release announcing the stock buyback program, UBS said: “Our ambition is for share repurchases to exceed our pre-acquisition level by 2026.”
The new program follows the completion in March of UBS’ previous stock buyback program that saw 8.62% of the lender’s stock worth $5.2 billion U.S. repurchased over a two-year period.
Buybacks occur when companies purchase their own shares on a stock exchange, reducing the available supply and pushing the price higher as a result.
UBS is in the final stages of integrating Credit Suisse after its former rival failed last year amid a liquidity crisis.
The integration of Credit Suisse has led UBS to report two consecutive quarterly losses, though it has still reported strong operating profits.
The stock of UBS has increased 47% over the last 12 months to trade at $30.48 U.S. per share.
