(MT Newswires) -- Sergio Ermotti, CEO of UBS, announces a $1 billion share buyback and a 27% dividend increase, underlining the bank's confidence in its financial strength and outlook for 2024. UBS confirms its profitability target for 2025, following a strong fourth quarter and the acquisition of $22 billion in new assets.

The merger of the operating entities of UBS and Credit Suisse AG is planned for the first half of the year, a crucial step in realising the expected synergies. UBS has achieved savings of $4bn by 2023 and is targeting further savings of $9bn by 2026, some of which will be reinvested in the business.

Ermotti emphasises sustainable growth, saying UBS is prepared to moderate revenue growth to improve returns and better assess risk. The bank plans to increase its wealth management assets by $100bn each year, while divesting less profitable assets.

UBS aims to improve its banking services in the US, in particular by strengthening its deposit and credit capabilities and expanding its global expertise. The bank aims to make it easier for its international clients to do business in the US market.

Regarding cost reductions, Ermotti says that job cuts are in line with previously announced plans, with a phased approach and a focus on retaining talent.

Bloomberg videos