Traders in the largest European investment banks achieved the best results in the first quarter of the year in the last ten years, thanks to the intensive trade caused by US President Donald Trump in connection with customs.
Swiss UBS, French banks BNP Paribas and Societe General, British Barclays and German Deutsche Bank have generated revenue of 13 billion euros from shares and bonds. It is their biggest shared income since 2015. in the year, the Financial Times reports.
Trump from arrival in the White House in January, uncertain economic policy provoked great oscillations in the value of shares, bonds and in the foreign exchange market.
“Market volatility is largely supported by banking operations in this segment, as was the case with us,” said the Chief Executive Director of the Bank of Societe General, Slawomir Krupa.
In the first quarter, UBS revenues in the trade segment increased annually for almost a third, reaching 2.3 billion euros. The largest French Bank BNP Paribas recorded a record quarterly revenue of 2.8 billion euros, transmits a fen.
Deutsche Bank no longer deals with trading in actions, but her income in trade bonds, currencies and goods increased by 17 percent, while in Barclays that growth was 21 percent. In this segment, they surpassed American competitors.
Societe General was predominantly focused on trade in actions, where revenues rose to more than a fifth to 1.06 billion euros.
After a long period of weak returns and dividends for shareholders, European banks in recent months are perceived by business flourities thanks to higher interest rates and market volatility that lasts from pandemic, and then energy crises.
Until this quarter, the record period in earnings from trade in the past ten years was the first quarter of 2022. year, when the total profit of the mentioned banks amounted to 12.8 billion euros, SEEbiz are transferred.
A very significant player in this segment of the banking business was also Credit Suisse.
The Chief Executive Director of UBS, Sergio Ermotti, stated that at the beginning of the second quarter, after Trump announced reciprocal customs, the market activity remained high, and the scope of trade in some days surpassed pandemic peaks by 30 percent.
Analyst at the Citigroup Bank, Andrew Coombes, considers that good earnings are expected in the second quarter. However, it warns of Ermotti’s statement that there is already a certain fatigue in investors, which indicates a gradual normalization of market movements.
