The quarterly reports continue to reward the European banking sector, confirming the resilience of credit institutions in a context of falling rates. After the excellent performances of UniCredit and HSBC – and while awaiting the accounts of Intesa Sanpaolo -, today the spotlight is on three other European giants: UBS, Deutsche Bank and Banco Santander.
Despite the more accommodating monetary policies of the European Central Bank, which could have led to lower margins, the sustained growth in commissions and efficient cost management allowed banks to exceed analysts’ expectations, strengthening market confidence in the European financial sector.
UBS: record results and Credit Suisse integration
UBS posted better-than-expected quarterly results, driven by M&A activity and the release of $668 million in statutory reserves. Third quarter profit rose to 2.5 billion dollars (2.1 billion euros), with a growth of 74% on an annual basis, while turnover reached 12.8 billion, +3% compared to the same period in 2024. The division dedicated to mergers and acquisitions shone with an increase of 23%, reaching 3.2 billion dollars. The result clearly exceeds the consensus, which estimated a net profit of 1.1 billion. At the same time, UBS continued the integration of Credit Suisse, achieving cost savings of 900 million dollars and covering 77% of the 13 billion target set for 2026. Despite the robust performance, the bank remains cautious: the Swiss institution points to the high valuation of the markets and the uncertainties linked to the US situation, which could affect activity in the capital markets.
Deutsche Bank: record profits and growing capital strength
Deutsche Bank closes the first nine months of the year with a pre-tax profit of 7.7 billion euros, up 64% on an annual basis (+36% net of costs related to the Postbank lawsuit). Net profit grew by 76% to 5.6 billion euros, while revenues reached 24.4 billion, +7% compared to the previous year, approaching the annual target of 32 billion. All the group’s divisions recorded double-digit growth, allowing it to maintain a RoTE at 10% and a cost/income ratio at 63%, in line with the guidance. The German bank also shows a solid capital position, with a CET1 capital ratio at 14.5%, up from 14.2% in the previous quarter. “We recorded record profits in both the quarter and the first nine months of 2025, confirming the creation of value for our shareholders,” commented CEO Christian Sewing, underlining the desire to return over 8 billion euros to shareholders by 2026.
Santander: profit rises and return for shareholders
Banco Santander closes the third quarter with a net profit of 3.5 billion euros, up 7.8% compared to the same period in 2024 and above market estimates. Revenues are slightly down by 1.3%, but commissions are up +4.3%, demonstrating the group’s ability to maintain high margins even in a more competitive context. The Spanish institution has set aside 181 million euros for legal issues in the United Kingdom, while the CET1 capital ratio rises to 13.1%, an increase of 10 basis points. In the first nine months of the year, profit attributable to shareholders reached 10.3 billion euros, +11% on an annual basis, marking a historic record for the period. Santander also announced an interim dividend of 11.5 cents per share, up 15% compared to 2024, confirming the group’s solidity and ability to generate sustainable value in the long term.
