Europe's biggest banks eased investor worries about slowing earnings on Wednesday, as Deutsche Bank, BNP Paribas, Standard Chartered and Santander all beat third-quarter profit forecasts, Reuters reported. UBS, Switzerland's largest bank, reported earnings broadly in line with expectations and accelerated its share buyback.

Source: Reuters

European banks have enjoyed record profits since 2024, fuelled by higher interest rates. But banking stocks had fallen about 10% over the past month amid concerns over lenders' exposure to euro zone government debt and a weakening economic outlook, and HSBC unsettled investors on Tuesday after reporting weaker-than-expected revenue growth, sending its shares down more than 5%.

BNP lifted by equity traders; Deutsche beats forecasts

BNP Paribas said a surge in equities trading, fuelled by volatile markets, helped lift its third-quarter profit 14% to €3.46 billion — yaani, about $3.85 billion. The French bank also announced a €1.3 billion share buyback and played down the impact of rising French government bond yields on its business. Citi analysts described the figures as a "solid set of results".

At Deutsche Bank, revenue from fixed-income and currency trading fell 3%, less severe than the 5% decline reported by US peers, and Germany's largest lender posted a 2% rise in profit, beating forecasts on strength in retail and corporate banking. "We are delivering on our commitments and are firmly on track to meet our 2026 objectives," chief executive Christian Sewing said. Deutsche Bank's own reported results put its third-quarter profit after tax at a record €1.9 billion, according to a summary of the bank's investor-relations figures.

UBS speeds up its $3 billion buyback; Santander hit in Brazil

UBS reported net profit of $2.69 billion for the three months, up 8% from a year earlier and broadly in line with the $2.71 billion expected in a company-compiled consensus forecast. It repurchased $1.8 billion of shares during the quarter and plans to complete its $3 billion buyback programme by February, ahead of its previous target of mid-2027. RBC analysts described the results as "mixed", with wealth-management revenues below expectations. The bank's reported figures also showed revenues of $13.35 billion and $55.1 billion of net new assets in global wealth management.

Source: Finimize / bank-reported results

Standard Chartered raised its income and profitability targets after third-quarter profit comfortably beat estimates, supported by its wealth and global markets businesses. Santander, the euro zone's most valuable lender, reported a 19% rise in underlying third-quarter net profit, helped by recently acquired lenders in Britain and the US — but weaker earnings and higher provisions in Brazil, where the surprise re-election of President Luiz Inacio Lula da Silva has rattled financial markets, clouded its results. "At a time of heightened volatility, our combination of at-scale global businesses and diversification across Europe and the Americas is a distinctive source of strength," executive chair Ana Botin said.

Shares were mixed on Wednesday: Deutsche Bank rose 3.4% and Standard Chartered 3.7%, while UBS fell 1.1% and Santander dropped 4.2%. The European banking index was flat. Analysts say the results show the post-rate-hike profit boom is not over yet — but, with the Iran war complicating the outlook for inflation and interest rates, investors are now demanding clear capital returns as well as dependable profits.