Ermotti Reboots UBS Buyback Expectations After Capital Rises
- Capital ratio increases after surprise drop in second quarter
- Bank warns on increased capital requirements, funding costs
UBS Plans to Complement Dividend With Share Buyback
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UBS Group AG Chief Executive Officer Sergio Ermotti is reviving investors’ expectations for a share buyback after the bank’s capital buffers rebounded and profit increased.
The bank’s CET1 capital ratio rose to 13.7 percent in the three months through September, up from 13.5 percent in the second quarter. UBS has pledged to return at least half its net profit to investors provided the ratio remains above 13 percent. Revenues rose across international wealth management, with net margins, a key profitability measure, little changed from the second quarter.