European banking giants Deutsche Bank, Banco Santander, and UBS all reported record or near-record first-quarter profits on Wednesday, benefiting from heightened market volatility linked to the Iran conflict. TotalEnergies also posted a 51% jump in net income, while Mercedes-Benz saw its earnings slump.
Deutsche Bank posted a record €2.2 billion quarterly post-tax profit, up 8% year-over-year. Net revenues rose 2% to €8.7 billion, and assets under management climbed to €1.8 trillion. CEO Christian Sewing cited the bank's balance sheet strength and strategic positioning. However, provisions for credit losses rose 10% to €519 million, reflecting economic uncertainty tied to the Middle East conflict.
Banco Santander reported attributable profit up 60% to €5.5 billion, including a €1.9 billion gain from the sale of Santander Bank Polska. Underlying profit rose about 12% to €3.6 billion. The bank announced a €5 billion buyback and targets at least €10 billion in buybacks over 2025-26. A cautionary note: its Openbank division saw underlying profit fall 38% due to a €207 million provision for potential UK motor finance complaints and the end of US EV tax incentives.
UBS reported an 80% rise in first-quarter net income to $3.04 billion, driven by wealth management and trading. The bank confirmed a $3 billion buyback program. Executives noted the Iran conflict's economic impact is manageable if short-lived, though duration remains a key risk.
TotalEnergies' net income rose 51% to $5.8 billion, supported by strong oil and gas prices. Production rose about 4% year-over-year. The company announced a 5.9% dividend increase and a $1.5 billion share buyback for Q2 2026.
Mercedes-Benz reported a sharp 17% drop in operating profit to €1.9 billion, with revenue falling 4.9% to €31.6 billion. The German automaker cited a 27% collapse in sales in China, US tariff pressure, and the costly EV transition. Despite the slump, results beat analyst expectations.