Europe’s largest banks joined Wall Street peers in a trading‑driven profit surge in Q2, as volatile markets lifted investment‑banking revenues. UBS posted a 17 per cent rise in net profit to $2.8bn, with its investment bank generating record revenue driven by equities trading; pre‑tax profit more than doubled to $1.2bn. Deutsche Bank saw a 10 per cent profit increase, reaching €1.9bn, powered by a sharp jump in investment banking and U.S. rates and credit trading. The results mirrored those of Goldman Sachs and JPMorgan, whose fortunes grew amid a boom in AI‑related stocks and large equity swings.

UBS CEO Sergio Ermotti praised the investment bank’s performance as “exceptional” but warned that risks remain high and sentiment could shift quickly. Wealth management also surged, with the bank attracting $36bn of net new assets, a third of which came from Asia, where its “one bank” strategy drove robust growth. The lender added $1.1bn of cost savings from the Credit Suisse integration, bringing cumulative savings to $12.6bn.

Deutsche Bank’s investment bank contributed a 59 % jump in pre‑tax profit to €1.3bn. CEO Christian Sewing highlighted AI’s role in creating value and cost savings, while the bank targets a 60 % cost‑income ratio and 13 % return on tangible equity by 2028.

Both banks face regulatory scrutiny, with UBS confronting potential capital rule changes that could require an extra $20bn in capital.