European banks didn't do as well as their U.S. peers in booming second-quarter markets, but they showed enough juice in their results today to spark a share rally.
Deutsche Bank, UBS and Standard Chartered all reported strong revenue from client trading and investing, in what were record quarterly results in some areas:
Deutsche Bank stock rose some 4% after it reported its best-ever second-quarter pretax profit, up 11%. It said revenue rose 9% and that it gained 34 billion euros (about $38.7 billion) in net new inflows in private banking and asset management.
UBS shares rose about 3%. The Swiss lender attracted $36 billion in net new money for the quarter, including a net positive inflow in its U.S. wealth management business. Surging equity and IPO markets gave a boost to its trading revenue.
Standard Chartered, which is based in London but counts Hong Kong and Singapore as its biggest markets, reported a 76% rise in second-quarter profit for its division catering to affluent customers, and said it gained $33 billion in net new money to deploy in the first six months. StanChart raised its dividend and said it would buy back $1 billion in shares, putting the stock on track to close at a record high.
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