European banks lift profits but still trail Wall St

By the Editorial Team · Thursday, October 29, 2026

European banks including Deutsche Bank, BNP Paribas, UBS, Santander, and Standard Chartered reported strong third-quarter profits driven by wealth management, corporate banking, and equities trading despite mixed results and economic challenges. While European banks demonstrated resilience with share buybacks and raised profit forecasts, their earnings remain below the substantial gains seen on Wall Street, reflecting ongoing geopolitical and regulatory pressures.

European banks reported solid third-quarter profits driven by wealth management and corporate banking, even as they fell short of the significant gains seen on Wall Street. Deutsche Bank, BNP Paribas, and UBS all posted quarterly earnings that met or surpassed analyst expectations, reflecting resilience amid a challenging global economic environment.

Swiss lender UBS reported net profit rose 8 percent to $2.7 billion, supported by strong inflows into its wealth management business in Asia-Pacific and the Americas. Gains in equities trading also contributed to the investment bank’s improved performance. Pre-tax profits increased 27 percent to $3.6 billion, with revenues up 5 percent to $14.8 billion. UBS reaffirmed its commitment to a global business model despite ongoing political debates in Switzerland over proposed tougher capital requirements. CEO Sergio Ermotti called for regulatory solutions that would safeguard financial stability without imposing excessive burdens on shareholders, clients, and employees. UBS intends to complete a $3 billion share buyback program ahead of its annual results in February, although further distributions remain subject to Swiss parliamentary decisions.

Deutsche Bank reported a record quarterly net profit of €1.9 billion, a 2 percent increase year-on-year, buoyed by a strong corporate banking segment that offset weaker investment banking revenues. The corporate bank generated revenues of €8.3 billion, up 4 percent from the same period last year. Pretax profit grew 11 percent to €743 million, driven by higher cash management and payments income. However, the bank set aside €501 million in provisions for potential loan losses, largely related to an alleged fake-invoice scandal involving Singapore-based iron ore trader Radiant World. The overall performance reflects CEO Christian Sewing’s strategy to reduce dependence on volatile investment banking revenues.

French lender BNP Paribas saw net profit rise 13.5 percent to €3.5 billion, helped by a 50 percent surge in revenues from its equities and prime services business. The investment banking division noted increased activity from European clients following months of uncertainty linked to the Middle East conflict. BNP Paribas also announced a €1.3 billion share buyback, signaling confidence despite investor concerns over France’s fiscal situation ahead of a contentious presidential election. The bank expects its core capital ratio to exceed its 13 percent target by year-end.

Spanish bank Santander’s net profit declined 2 percent to €3.43 billion, weighed down by charges related to recent acquisitions in the United States and United Kingdom totaling over €400 million. Nonetheless, underlying profit grew 19 percent to €3.85 billion, helped by contributions from British lender TSB and US-based Webster Financial. The bank’s shares declined 3.4 percent in early trading.

Standard Chartered, focusing on Asia, boosted third-quarter pre-tax profit by 27 percent to $2.3 billion, surpassing analyst estimates. Revenue in its wealth management division increased 25 percent, contributing to the bank raising its 2026 return on tangible equity forecast to around 14 percent, up from over 12 percent previously. Shares in Standard Chartered rose 7 percent in Hong Kong, extending a year-to-date gain exceeding 16 percent.

Early market reactions in Europe were mixed: Deutsche Bank’s shares rose 3.7 percent, while UBS and BNP Paribas stocks fell 1.9 percent and 0.6 percent, respectively. The results underline a steady quarter for European banks amid geopolitical and economic uncertainties, though their earnings still trail behind those achieved by major Wall Street competitors.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.