UBS shares sank on Tuesday after its CEO warned again about the negative impact of new Swiss capital rules and the bank said its buyback plans hinged on no major changes to them. Shares in Switzerland's largest bank initially rose after its fourth quarter profit beat forecasts,

Swiss banking giant UBS on Tuesday posted $770 million in fourth-quarter net profit, compared with a mean forecast of $886.4 million in a LSEG poll of analysts and with a $483 million estimate in a company-provided estimate.

UBS Group AG says it would have to fund any new capital requirement from the Swiss government through higher profit retention, according to the bank’s Chief Financial Officer Todd Tuckner.

UBS Group posted fourth-quarter profit that beat forecasts by a wide margin and said it would buy back up to $3 billion in shares this year if there were no major changes to bank capital rules in Switzerland in the near term.