No End in Sight for European Banks as Revenue Declines
Record-low interest rates and wild market swings are eroding profit at Europe’s banks, with no end in sight. From UBS Group AG’s wealth-management unit to Commerzbank AG’s consumer-lending business, income is shrinking as margins get squeezed and clients avoid trading. Executives at the banks, two of Europe’s largest, warned not to expect an improvement any time soon.
“UBS, Commerzbank, BNP Paribas SA, HSBC Holdings Plc and Societe Generale — have a combined 19 operating divisions with businesses ranging from French credit cards to U.S. stock trading. Revenue fell in 17 of them.”
Five large European lenders that reported results on Tuesday and Wednesday — UBS, Commerzbank, BNP Paribas SA, HSBC Holdings Plc and Societe Generale — have a combined 19 operating divisions with businesses ranging from French credit cards to U.S. stock trading. Revenue fell in 17 of them.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. The operational structure of the Group is comprised of our Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. UBS’s strategy builds on the strengths of all of its businesses and focuses its efforts on areas in which it excels, while seeking to capitalize on the compelling growth prospects in the businesses and regions in which it operates, in order to generate attractive and sustainable returns for its shareholders. All of its businesses are capital-efficient and benefit from a strong competitive position in their targeted markets.
Headquartered in Zurich, Switzerland, UBS is present in all major financial centers worldwide. It has offices in 54 countries, with about 35% of its employees working in the Americas, 35% in Switzerland, 17% in the rest of Europe, the Middle East and Africa and 13% in Asia Pacific. UBS Group AG employs approximately 60,000 people around the world
Commerzbank is a leading international commercial bank with branches and offices in more than 50 countries. The core markets of Commerzbank are Germany and Poland. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services.
Commerzbank finances more than 30 per cent of Germany’s foreign trade and is the unchallenged leader in financing for SMEs. With its subsidiaries Comdirect and Poland’s M-Bank it owns two of the world’s most innovative online banks.
About BNP Paribas SA
BNP Paribas SA is a provider of banking and financial services, has four domestic retail banking markets in Europe, namely Belgium, France, Italy and Luxembourg. The Bank operates in 75 countries over 147,000 in Europe. The Bank operates in two divisions: Retail Banking & Services, which include Domestic Markets and a new entity, International Financial Services which includes the operations of BancWest, Europe-Mediterranean, Personal Finance, Wealth and Asset Management and Insurance, and Corporate and Institutional Banking (CIB), including Corporate Banking, Global Markets and Securities Services. It offers a range of asset management services to both private and institutional investors. It offers corporate finance services for the energy, infrastructure, real estate, media and telecoms, metals and mining, and transport sectors. BNP Paribas Principal Investments manages the Bank’s portfolio of listed and unlisted investments with a view to extract value over the medium term.
Visit: BNP Paribas SA
HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions. We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.
Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories
About Societe Generale
Societe Generale is one of the leading financial services groups in Europe. Based on a universal banking model, the Group combines financial strength with a strategy of sustainable growth, putting its resources to work to finance the economy and its clients’ projects.
Present in 66 countries and benefiting from a solid foundation in Europe and in high-potential regions across the globe, the 146,000 employees of the Group and its subsidiaries support over 31 million individual customers, large corporates and institutional investors worldwide. They offer a wide range of advisory services and tailored financial solutions that rely on three complementary core businesses.
Visit: Societe Generale
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