As Barclays reported a loss of £1.2bn, some of its big European peers beat expectations with their second quarter earnings. Here are today's results from UBS, BNP Paribas, Credit Suisse and Banco Santander in brief.
Net profit: Sfr 1.17bn (£925m) in three months to 30 June, up 14 per cent year-on-year, above analysts’ expectations of Sfr 879m, according to a Reuters poll.
What was significant? While low volatility hit trading and overall client activity, UBS said its wealth management division – which delivered a 15 per cent growth in profits – was helped by improved investor sentiment.
What did the company say? “Considering market conditions, the second quarter results were very good and contributed to a strong first half of the year,” said chief executive Sergio Ermotti.
Our global wealth management business in particular delivered an excellent performance. The results once again demonstrate the value of our diversified business model, allowing us to grow profitably and sustainably over the cycle and in a variety of market conditions.
How have investors reacted? At the time of writing, UBS shares had plunged three per cent to Sfr 16.92.
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Net income: €2.4bn (£2.1bn) in second quarter, down 6.4 per cent year-on-year, ahead of €1.91bn expected by analysts.
What was significant? BNP’s corporate and institutional bank, ie. its investment banking division, had a “very good quarter”, with revenues up 4.6 per cent to €3.2bn (total revenues were €10.94bn, down 3.4 per cent).
What did the company say? “With €2.4bn in net income, BNP Paribas again delivered a very good performance this quarter,” said chief executive Jean-Laurent Bonnafe.
I would like to thank all the employees of the group for these good results which illustrate the favourable trend at the start of the 2020 plan.
How have investors reacted? BNP Paribas shares have dipped 0.2 per cent to €65.86 at the time of writing.
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Net profit: Sfr 303m (£239m) in second quarter, up 78 per cent year-on-year, just ahead of Sfr 302m expected by analysts.
What was significant? Like UBS, Credit Suisse highlighted a good performance in wealth management, where it experienced its strongest inflows in six years in the first half of the year.
What did the company say? “We are now midway through the execution of our three-year strategic plan and our strategy is working: we are making good progress against our key objectives,” said chief executive Tidjane Thiam.
Our focus on the global wealth management opportunity is paying off, with growing net new assets and record global assets under management growing at eight per cent in this first half. In parallel, our efforts to right-size and restructure global markets (GM) are also having an impact as GM was profitable during [the first half].
How have investors reacted? Credit Suisse’s share price is currently up two per cent at Sfr 14.99.
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Net profit: €1.75bn (£1.57bn) in three months to June, up 37 per cent year-on-year, in line with expectations.
What was significant? The Spanish bank, which recently took over troubled lender Banco Popular, said it had benefited from strong growth in Latin America.
What did the company say? “We have continued to deliver on our commitments, creating strong profitable growth, and further improving the quality of our earnings throughout the group,” said executive chairman Ana Botin.
The business has seen positive trends across all markets with particularly strong growth in Latin America, further improvements in Spain, and robust performance in the UK despite the ongoing challenges.
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