Europe’s banks have found one way to imitate Wall Street: flooding investors with financial reports on the same day. Five of the continent’s biggest lenders — UBS, Santander, Deutsche Bank, BNP Paribas and Standard Chartered — reported third-quarter results on Wednesday, showcasing different business models and problems.
The sector’s stock-market run has been interrupted by concerns over rising interest rates, slowing growth and political issues. Santander, which best fits that profile, was the worst performer; its shares dropped 5.6 per cent. Deutsche Bank shares rose despite a 3 per cent year-on-year dip in fixed income and currencies revenue. BNP reported a 50 per cent jump in revenue from trading equities and lending to hedge funds.
UBS and Standard Chartered have a strong tailwind from rapid growth in wealthy clients in Asia. UBS’s wealth management division added $55bn in net new assets, while Stan Chart’s affluent clients added $20bn and it upgraded its full-year earnings forecast.
Political issues still hamper all five: French protests and elections weigh on BNP; Brazil’s elections hurt Santander; Beijing’s tax clampdown worries Stan Chart; German Chancellor Friedrich Merz’s slow progress affects Deutsche; and UBS fights the Swiss finance minister over capital requirements. UK bank shares jumped after the government announced a lighter-than-expected tax increase.
Source: Financial Times Companies · Summarized by HeadlinesBriefing