Updated
Updated · Bloomberg · Jul 30
Barclays, UBS, BNP Paribas Lift Equity Trading Revenue 46%-53% as US Rivals Top 70%
Updated
Updated · Bloomberg · Jul 30

Barclays, UBS, BNP Paribas Lift Equity Trading Revenue 46%-53% as US Rivals Top 70%

3 articles · Updated · Bloomberg · Jul 30

Summary

  • Barclays and UBS posted second-quarter equity trading revenue gains of 46% and 53% in dollar terms, extending a European surge after BNP Paribas reported a 47% rise last week.
  • Those results show Europe’s big banks joining the global stock-trading boom, but they still trail the biggest US banks, where four firms delivered gains of more than 70%.
  • The gap reflects the US leaders’ much larger businesses lending to hedge funds and other leveraged traders, a key engine of second-quarter trading strength.
  • That catch-up trade carries risk: when market conditions reverse, stock-trading businesses tied to hedge-fund activity can turn sharply lower.

Insights

Will cross-border mega-mergers finally give European banks the firepower to dethrone Wall Street, or is it a trap?
Are strict EU regulations secretly protecting European banks from a U.S.-style market crash despite lagging profits?
Could Europe's fragmented banking system trigger a massive crisis if the current stock trading boom suddenly collapses?