UBS Turns To Profit In Q4, Plans $1 Bln Buyback; Warns On Q1 Client Activity

(RTTNews) - Swiss banking giant UBS Group AG (UBS) reported Tuesday that its fourth-quarter net profit attributable to shareholders was $696 million or $0.18 per share, compared to net loss of $2.42 billion or $0.65 per share a year ago.

Operating profit before tax was $862 million, higher than prior year's $845 million. Adjusted profit before tax was $860 million.

Operating income for the quarter declined to $6.97 billion from last year's $7.21 billion.

For 2018, the Board of Directors intends to propose a dividend to UBS Group AG shareholders of CHF 0.706 per share, an 8% increase on the prior year.

For 2019, UBS is targeting to repurchase up to $ 1 billion of shares.

Looking ahead, the company noted that while global economic activity continues to moderate, the overall outlook for economic growth remains positive, and asset prices have improved from the fourth quarter of 2018.

Lack of progress in resolving geopolitical tensions, rising protectionism and trade disputes along with increased volatility, which affected investor sentiment and confidence in the second half of the year and particularly in the fourth quarter of 2018, would affect client activity in the first quarter of 2019.

Further, lower invested assets as a result of market declines in the fourth quarter of 2018 are expected to affect recurring revenues in Global Wealth Management and Asset Management.