On Monday, shares of UBS Group AG fell to the lowest level since July on the back of disappointing financial results of its key divisions.
The wealth management business reported pre-tax earnings of 488 million francs ($508 million) compared with the expected level of 569 million francs.
The investment bank generated a profit of 49 million francs compared with forecasts for 131 million francs. At the same time, the bank lowered targets for its asset management unit.
The bank booked a net loss of 2.2 billion francs in the fourth quarter due to a change in the US tax code which caused it to take a charge of 2.9 billion francs.
In this regard, UBS said that it will buy back 2 billion Swiss francs of its shares over three years. The last time it happened in 2007.
The bank also intends to combine two of its asset management divisions.
At the same time, UBS CEO Sergio Ermotti accelerated the development of wealth management, raising levels of capital and profitability, thus boosting expectations for increased shareholder payouts.
Recently, the bank asked investors and analysts to assess whether it is worth giving a more formal strategic update.
