Several of Europe’s largest banks — including Deutsche Bank, UBS, Barclays, and HSBC — posted solid earnings in the first quarter of 2025, largely boosted by strong trading revenues. But behind the upbeat financial results, a more cautious tone is emerging.
UBS reported a $1.7 billion net profit, beating expectations, yet flagged growing risks tied to U.S.-led trade tensions and economic volatility. The Swiss lender warned that rising tariffs and slowing global growth could dent wealth management revenue and delay corporate deals in the months ahead.
Deutsche Bank, which notched its best quarterly profit in 14 years, also struck a warning note. Despite gains in fixed income trading, executives pointed to weakening loan quality, slowing economic growth, and increasing cost pressures — all of which could threaten future performance.
Other major lenders like Santander and Société Générale are leaning more on domestic markets to offset global headwinds, while BNP Paribas is shifting focus to restructuring and selective growth opportunities.
The consensus: profits are strong for now, but the outlook is clouded by economic uncertainty, trade disruptions, and tightening credit conditions. European banks are adjusting strategies accordingly — prioritizing caution, cost control, and risk management in an increasingly unpredictable global landscape.
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