European bank stocks led the Stoxx Europe 600 higher Thursday morning after a strong cohort of Q1 earnings releases. UBS Group AG (UBS) reported net profit attributable to shareholders of $2.62 billion for Q1 2026 — a third above the $2.0 billion consensus — driven by a record quarter at Global Wealth Management and continued progress on the Credit Suisse integration synergy plan. Deutsche Bank (DB) reported pre-tax profit of EUR 2.45 billion, the highest first-quarter result since 2011.
UBS shares gained 6.4% in Zurich trade, the largest single-session gain since the November 2024 strategy day. CEO Sergio Ermotti said on the post-results call that the bank is now operating at an underlying cost-to-income ratio of 67% and is on track to achieve the 70% medium-term target ahead of plan. Net new asset inflows in Global Wealth Management reached $33 billion in the quarter — well above the $24 billion consensus and the strongest first-quarter inflow since 2008. The Common Equity Tier 1 ratio rose to 14.6%.
Deutsche Bank FICC Surprises
Deutsche Bank's investment-banking division was the standout: fixed-income, currencies and commodities (FICC) trading revenue rose 24% year-on-year to EUR 2.85 billion, beating the EUR 2.55 billion consensus. The result was driven by elevated FX volatility tied to the Iran war and yen weakness, as well as record activity in European credit. Equities trading revenue grew 16% to EUR 825 million. Total Investment Bank revenue of EUR 4.3 billion was 18% above consensus. Deutsche Bank shares rose 5.4% in Frankfurt.
BNP Paribas (BNP.PA) — which reported Tuesday — also delivered a strong quarter with FICC revenue up 19%. Barclays (BCS) reports next Tuesday with consensus estimates of GBP 1.78 billion in pre-tax profit.