Thanks to the CS deal: UBS is worth over $100 billion again

class = “sc-cffd1e67-0 fmXrkB”>

Following the rise in the stock market at the end of the year, UBS again reached a market value of over 100 billion US dollars.

The last time UBS rose above the 100 billion mark was in 2007, shortly before the financial crisis that threatened UBS’s existence. As it is known, the state and the Swiss National Bank helped the banking giant in trouble. Later, its stock market value dropped to $25 billion.

In accordance with the wishes of the bosses

But the empowered UBS is far from that. According to the “Bloomberg” portal, their valuation at the end of the year reached up to 105 billion dollars. UBS shares have been the best-performing bank stocks since the acquisition of Credit Suisse in March 2023, according to the Swiss specialist portal “Tippinpoint”.

This corresponds to the stated goal of UBS Chairman Colm Kelleher (66): He has always emphasized that by 2023 he wants to be “best in class” with UBS when it comes to stock market valuation.

No one knows whether the success will continue this year. There were already statements last year that the UBS share price could rise to 40 francs and above. But it’s far from that right now.

UBS expects a return on equity of approximately 15 percent by the end of 2026. Today, experts’ predictions are 10 percent and 12 percent for 2025 and 2026.

UBS shareholders have little to gain from this

Long-time UBS shareholders have little benefit from the price increase, according to Tippinpoint. They still face huge book losses. The price per share is still significantly lower than before the financial crisis due to dilution caused by repeated capital raisings.

In the boom years after 2003, the price per share rose to 70 francs. It’s currently just under 25 francs. The number of shares outstanding has tripled since 2007, reaching approximately 3.46 billion.

Source :Blick