Norway’s $1.4 trillion sovereign wealth fund has become the biggest shareholder in UBS, as the Swiss lender tries to win over international investors to the benefits of its historic takeover of Credit Suisse, Report informs referring to The Financial Times.
Norges Bank Investment Management, which runs the world’s biggest sovereign wealth fund, increased its stake in UBS to above 5 percent this month, having been a shareholder in the group for almost 20 years.
UBS executives have come under pressure over the past six months to prove to investors that they can make a success of the $3.4 billion state-orchestrated rescue of former rival Credit Suisse. Many big fund managers are focused on how well UBS negotiates a complex integration process and how early it restarts shareholder returns.
Investors and analysts responded positively to the bank announcing last month that it would not seek state financial support for the deal.
Its stock received a further boost at the end of August when UBS reported $29 billion of profit in its second-quarter results — the biggest-ever quarterly haul for a bank — almost entirely fueled by an accounting gain on the Credit Suisse acquisition.
Analysts have predicted UBS will restart share buybacks next year, which were paused when it agreed to buy Credit Suisse.