Despite a backdrop of shifting capital regulations in Switzerland and an increasingly volatile global economy, UBS remains committed to its $3 billion share buyback initiative for 2025. Speaking at the bank’s annual general meeting in Lucerne on Thursday, Chairman Colm Kelleher confirmed that the Swiss banking giant will proceed with its plan to return capital to shareholders—beginning with a $1 billion buyback in the first half of the year, followed by up to $2 billion in the latter half.

Kelleher emphasized that unless there are major and immediate changes to the capital framework, UBS intends to stay the course. “We remain focused on rewarding our shareholders,” he told attendees, reinforcing the bank’s strategy amid growing market unease.

Not everyone is on board with the plan. Proxy adviser Ethos voiced strong objections, criticizing the move as ill-timed and politically insensitive. Ethos Foundation CEO Vincent Kaufmann condemned the buyback as “capital destruction,” arguing that funds would be better allocated toward strengthening UBS’s financial base, especially in the wake of the 2023 Credit Suisse collapse and the subsequent emergency takeover by UBS.

Despite the pushback, shareholders gave the green light to the buyback program with an overwhelming 93.5% approval.

The Swiss government is expected to unveil proposed updates to capital requirements in June, part of a broader effort to bolster financial resilience and avoid a repeat of past banking crises. However, Kelleher warned against further tightening of Swiss financial regulations. “UBS is already constrained by the current regulatory Swiss finish,” he said, referring to Switzerland’s particularly strict financial rules. “Doubling down while other jurisdictions are relaxing theirs would jeopardize UBS’s competitiveness, the Swiss banking hub, and the national economy.”

CEO Sergio Ermotti echoed Kelleher’s caution, pointing to mounting geopolitical and macroeconomic headwinds. “2025 is shaping up to be a highly unpredictable year,” Ermotti noted, citing recent global developments as signs of deepening instability.

While UBS remains rooted in Switzerland and committed to its role in the country’s financial ecosystem, the bank is clearly signaling its resistance to further regulatory tightening—prioritizing shareholder returns even as the economic outlook dims.