UBS: targets updated - stock slapped by market

(CercleFinance.com) - The UBS share is down over 5% on Tuesday morning, after the Swiss banking group updated its performance targets and capital forecasts for the period 2020-2022.


In a statement detailing its Q4 results, the Swiss investment bank now says that it is targeting a return on CET1 equity capital of between 12% and 15%.

The group also sets a target of a cost/income ratio of 75% to 78%, accompanied by 10% to 15% growth in pre-tax earnings for its wealth management division.

In its statement, UBS explains that continued low interest rates and the persistence of accommodative monetary policies should continue to weigh on its results.

UBS has posted Q4 net attributable income of 722 million dollars, up an impressive 129% year-on-year, for a return on CET1 equity of 8.2%.

The Swiss investment bank has also expressed its intention to increase its dividend per share by 0.01 dollar per year and to restore a "growing" part of its equity through share repurchases, although the market frowned on this publication in Zurich this morning.

The UBS share is currently down over 5% to less than 12.2 Swiss francs, by far the worst performance in the SMI index in early trading.



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