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UBS could increase payouts if legal, regulatory costs fall -CEO

BASEL May 4 UBS Group AG could increase payouts to shareholders if legal and regulatory costs come down, Chief Executive Sergio Ermotti said on Thursday.

Switzerland's biggest bank has incurred 3.9 billion Swiss francs ($3.9 billion) in costs since 2012 to cover legal fees and new regulations, Ermotti said in a speech at UBS's annual general meeting.

"That means that if legal and regulatory costs start to fall, we will be in a position to return even more capital to you, our shareholders, whether in the form of dividends or share buybacks," Ermotti said, according to prepared remarks.

($1 = 0.9919 Swiss francs)

(Reporting by Joshua Franklin; Editing by Michael Shields)

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