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UBS Rises After Pledging Higher Payouts in Wake of Scrapped Deal

  • Lender returns excess capital after Wealthfront deal cancelled
  • European banks are racing to reward shareholders as rates rise
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WATCH: UBS is returning excess capital to investors. Tom Metcalf reports.Source: Bloomberg
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UBS Group AG plans to raise the dividend for this year by 10% and will probably exceed a target for share buybacks, as it returns excess capital to investors following the cancellation of its Wealthfront acquisition.

The Zurich-based lender will propose a dividend of 55 cents a share for approval at its annual meeting next year, up from 50 cents a year earlier, it said in a statement Tuesday. It also expects share repurchases to exceed a target of $5 billion for 2022. UBS has already bought back $4.1 billion worth of shares as of Sept. 9.