UBS Q4 profit jumps 137% to $1.7 billion

UBS posted a fourth-quarter net profit of $1.708 billion, representing a 137 percent increase, as high levels of client activity helped the world’s largest wealth manager end 2020 on a strong note.

Consequently, it far outstripped median expectations for $966 million in a poll of 20 analysts compiled by the bank.

UBS also boosted profits by 54 percent for the full year, due to strong lending and trading among its wealthy and ultra-wealthy clients, coupled with a surge in investment banking activity.

According to CEO Ralph Hamers, their strong 2020 results clearly demonstrate the true strength of their franchise.

The board of Switzerland’s biggest bank intends to propose a dividend of $0.37 per share to shareholders while buying back around $1.1 billion of shares this quarter.

UBS will be launching a new three-year buyback program of up to $4.50 billion, as well as wrap up an existing one.