UBS Slips To Loss In Q4 On US Tax Charge, Ups Dividend; Plans CHF 2 Bln Buyback

(RTTNews) - Swiss banking giant UBS Group AG (UBS) reported Monday that its fourth-quarter net loss attributable to shareholders was 2.22 billion Swiss francs, compared to prior year's profit of 636 million francs.

Loss per share was 0.60 francs, compared to profit of 0.17 francs a year ago.

The results included the 2.87 billion francs net DTA write-down as a result of US tax law changes. Excluding this net write-down, net profit would have been 641 million francs.

UBS's fourth-quarter profit before tax was 997 million francs, up from 746 million francs a year ago. Adjusted profit before tax was 1.22 billion francs.

Operating income grew to 7.12 billion francs from prior year's 7.06 billion francs.

Further, for 2017, the company said its Board of Directors intends to propose a dividend to UBS Group AG shareholders of 0.653 francs per share, an 8% increase on the prior year.

The bank will also initiate a share repurchase program of up to 2 billion francs over three years, including up to 550 mon francs in 2018, commencing in March.

Looking ahead, the company said, "We expect the improved investor confidence and the macroeconomic developments we observed in 2017, as well as typical seasonality, to continue to benefit our global wealth management businesses. However, low market volatility is likely to persist in the short term, affecting institutional client activity levels in particular."