The global wealth manager is on track to complete the integration of Credit Suisse by next year and return payout plans to pre-acquisition levels. That said, analysts are focused on a potential US$25 billion hike in capital requirements as a result of Switzerland’s reform of Too-Big-to-Fail rules, with Ermotti warning against an “overreaction” that would hurt competitiveness.
UBS Group AG shares slumped on Tuesday, signalling that uncertainty over an upcoming government decision on capital requirements is overshadowing the bank’s progress in integrating Credit Suisse.
The Zurich-based bank said it aims to buy back up to US$3 billion ($4.08 billion) of its own shares this year, and posted US$770 million in net profit, aided by a big beat at the investment bank. Shares nevertheless dropped more than 6%, leading declines among European banks.
