Key facts
- Santander's results were impacted by weaker earnings and higher provisions in Brazil.
- BNP Paribas's third-quarter profit rose 14% to €3.46 billion.
- Deutsche Bank's profit rose 2%, beating forecasts.
- Standard Chartered raised income and profitability targets.
- UBS reported $2.69 billion in net profit, an 8% increase year-on-year.
- Santander's net profit rose 19% due to acquisitions in Britain and the US.
European banks are showing signs of resilience as several lenders reported stronger-than-expected third-quarter results, countering concerns about a slowdown in earnings. Deutsche Bank, BNP Paribas, Standard Chartered, and Santander all surpassed profit forecasts, while UBS accelerated its share buyback program. However, Santander's performance was dampened by weaker results and increased provisions in its key Brazilian market, a region unsettled by the re-election of President Luiz Inacio Lula da Silva. European banks have benefited from higher interest rates, but recent stock declines reflect worries about exposure to sovereign debt and a deteriorating economic outlook. HSBC's recent report of weaker revenue growth also contributed to investor unease.