By Cristina Roca
UBS Group AG on Tuesday reported higher-than-expected fourth-quarter net profit and set new targets as part of its strategy update.
The Swiss bank’s net profit fell to $1.35 billion from $1.64 billion a year earlier, beating analyst expectations of $863 million, according to a company-compiled consensus.
UBS said its bottom line was weighed down by a $740 million provision taken for a French tax case.
As part of its new plan, UBS said it will target more than $6 trillion in invested assets across its global wealth management, asset management and personal and corporate banking units. It will also aim for a 15%-18% return on common equity tier 1 capital and a cost-to-income ratio of 70%-73%.
The lender’s fourth-quarter operating income rose 8% to $8.73 billion, coming in ahead of analyst expectations of $8.49 billion, according to the same consensus.
UBS proposed a dividend of 50 cents a share for 2021, up from 37 cents the year prior, and said it intends to buy back $5 billion of shares in 2022.
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