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By Scott Kanowsky
Investing.com -- Shares in UBS Group AG (SIX:UBSG) rose on Tuesday after the Swiss bank unveiled a proposed 10% increase to its annual dividend.
In a statement, UBS said it will adjust its ordinary dividend for 2022 to $0.55 a share from $0.51 if the move receives shareholder approval.
The company added that it expects share buybacks this year to exceed its original full-year target of $5B. The lender has already repurchased $4.1B in shares so far in 2022.
"We will provide guidance on next year’s capital return at our fourth quarter earnings presentation and expect to continue to have share repurchases and a progressive dividend," UBS said.
The announcement comes after UBS agreed to terminate a merger agreement with U.S.-based fintech firm Wealthfront earlier this month.
UBS did not explain why it chose to scrap the tie-up, but the Financial Times has reported that the decision was linked to a recent decline in the valuations of technology businesses.
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