As part of the repurchase program approved at its Annual General Meeting on 10 April 2025, UBS Group AG announces the launch of a new two-year program to repurchase up to USD 2bn of shares.
Zurich, 30 June 2025 - As part of the repurchase program approved at its Annual General Meeting on 10 April 2025, UBS Group AG ($UBSG (-1,17%) ) announces the launch of a new two-year program to repurchase up to USD 2bn of shares.
The new program is scheduled to start on 1 July 2025. As previously announced, UBS intends to repurchase up to USD 2bn of shares in the second half of 2025.
The program launched in April 2024 was closed after completing its aim of USD 2bn of share repurchases.
UBS will communicate its 2026 capital return ambitions with its fourth quarter and full-year 2025 financial results early next year.
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And as a small service the explanation of share buybacks <3
A share buyback means that a company buys back its own shares on the market, thereby reducing the number of freely available shares. This spreads the profit over fewer shares, which automatically increases earnings per share. A higher EPS looks attractive to investors and can support or even drive the share price. Buybacks are often seen as a signal that the company believes in its own success and considers the share to be undervalued. Instead of investing the surplus capital in new projects, it is indirectly returned to the shareholders. In contrast to dividends, no money flows directly into the account, but the value per share increases. At the same time, the buyback reduces equity because money flows out of the treasury, which can improve the return on equity. Many companies also use buybacks to offset the dilution caused by employee share programs. This is usually a positive sign for investors because it shows confidence in the company's financial strength. A buyback often has a stabilizing effect, especially when the share price fluctuates. Nevertheless, a company must always consider whether it would be better to invest the money in growth, innovation or debt reduction. This is because a buyback is particularly worthwhile if there are no more attractive investment opportunities. What counts in the long term is that enough capital remains for new projects, crises or regulatory requirements. Used correctly, buybacks can therefore bring added value to shareholders without jeopardizing future viability. This is why investors often see them as a sign of maturity and solid management.
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Happy Investing
GG