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Swiss giant UBS posts $770 million in net profit, launches $1 billion share buyback in first half

Fabrice Coffrini | Afp | Getty Impressions

Swiss banking giant UBS on Tuesday posted $770 million in fourth-quarter net profit, launching a $1 billion part buyback program in the first half of 2025.

The net profit figure compares with a mean forecast of $886.4 million in a LSEG record of analysts and with a $483 million estimate in a company-provided estimate.

After weathering the storm of a turbulent government-backed jam with fallen domestic rival Credit Suisse in 2023, UBS hoped to achieve $7.5 billion out of a total of $13 billion in price savings by the end of last year, with CEO Sergio Ermotti signaling in a Bloomberg interview last month that redundancies were “absolute” as part of the process — even as the group aims to rely on voluntary departures.

The Swiss belt tightening adds to a perfect example inform of broader expense discipline and restructuring across Europe’s banking sectors, as lenders exit a period of high importance rates and claw profitability to keep pace with U.S. peers. On Monday, fellow Swiss bank Julius Baer revealed an additional aim of 110 million of Swiss francs ($120 million) in gross savings, while HSBC last week asserted it is preparing to wind down its M&A and equity capital markets operations in Europe, the U.K. and the U.S.

Armed with a balance sheet that topmost $1.7 trillion in 2023 — roughly double Switzerland’s anticipated economic output last year — UBS has been quarreling vocal concerns at home that its scale has breached the Swiss government’s comfort, depriving the lender of peers that can absorb it and surface Bern with a steep nationalization price tag, in the event of its failure.

The Swiss economy has already been backed into a flimsy corner by depressed annual inflation — of just 0.6% in December — and a punitively strong Swiss franc, which no greater than gained further ground on Monday as the global tumult resulting from U.S. tariffs pushed jittery investors toward the safe-haven asset.

 This interruption news story is being updated.

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