European Banks Beat Profit Forecasts, but Brazil Weighs on Santander

European banks including Deutsche Bank, BNP Paribas, Standard Chartered and Santander reported stronger-than-expected third-quarter profits, easing investor concerns about slowing earnings growth. UBS also reported results broadly in line with market expectations and accelerated its share buyback programme. The results come as European banking stocks face pressure from concerns over government debt exposure, a weakening economic outlook and the possibility that the profit boost from higher interest rates is fading.

BNP Paribas recorded a 14% increase in third-quarter profit to €3.46 billion, supported by strong equities trading, and announced a €1.3 billion share buyback. Deutsche Bank reported a 2% rise in profit, driven by its retail and corporate banking businesses, while Standard Chartered raised its income and profitability targets following a strong performance. UBS posted net profit of $2.69 billion, up 8% from a year earlier, and plans to complete its $3 billion share buyback programme by February 2027.

Santander’s results were overshadowed by weaker earnings and higher provisions in Brazil, where political developments following President Luiz Inácio Lula da Silva’s re-election have unsettled financial markets. Despite these challenges, the Spanish lender reported a 19% rise in underlying third-quarter net profit, supported by recently acquired banking businesses in Britain and the United States. Meanwhile, investor reactions remained mixed, reflecting concerns about slowing revenue growth, deposit competition and uncertainty surrounding inflation and interest rates.

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