Despite strong results, UBS is cautious about the future
The largest wealth manager in the world, UBS, posted Q4 2020 figures higher-than-expected.
For the last quarter of 2020, UBS reported a $1.71 billion net income, topping the $967 million expected. At the same time, the figures are 137% higher than those reported in the year before.
Despite the pandemic, people were eager to invest. According to UBS CEO, Ralph Hamers, the bank reported a “record number in invested assets of more than 1 trillion (dollars) in the asset manager and more than 3 trillion (dollars) in the wealth manager.”
For the future, the bank stated that it would restart the buyback program. According to its three-year plan, it wants to repurchase shares worth $4.5 billion, out of which $1 billion will be purchased in the first quarter of the current year. Moreover, UBS proposed a 2020 dividend of $0.37 per share. However, Hamers is cautious given that new national lockdowns are enforced in Europe and the shortage in COVID-19 vaccines.
But UBS started 2021 on the right foot. At the moment of writing, its shares are up roughly 3% since the beginning of the year.