UK (Business Emerge), July 25: European banks have recently disclosed their earnings for the first half of 2024, showcasing a spectrum of performance outcomes. Notable institutions such as Deutsche Bank, BNP Paribas, Banco Santander, Lloyds, and UniCredit have updated stakeholders on their financial standings.
Deutsche Bank’s Performance
Deutsche Bank’s operating results for H1 2024 showed moderate strength, with profit before tax reported at €2.4 billion, or €3.8 billion excluding the Postbank litigation provision. This represents a slight decrease from the €3.3 billion recorded in the first half of 2023. The bank had earlier indicated that the Postbank provision would affect this quarter’s profit, and it announced that no share buyback would occur this year. Net revenues for H1 2024 increased by 2% to €15.4 billion, while adjusted costs dropped by 2% to €10.1 billion. For Q2 2024, profit before tax (excluding the Postbank provision) reached €1.7 billion, up from €1.4 billion in Q2 2023. Adjusted costs for Q2 2024 rose by 2% to €5 billion.
Christian Sewing, CEO of Deutsche Bank, commented, “These results demonstrate our operating strength. In the first half of the year, our underlying profitability was the highest since 2011, showcasing the success of our strategic initiatives. We are maintaining strong momentum in our client franchise across all sectors, supported by our robust capital ratio and disciplined cost and risk management, aligning us with our 2025 goals and shareholder commitments.”
BNP Paribas’ Results
BNP Paribas reported better-than-expected earnings for Q2 2024, driven by robust performance in equity trading and prime brokerage services. However, the bank faced challenges in its retail sector due to a decline in net interest income, particularly in Italy and France. Revenues for Q2 2024 rose by 3.9% to €12.27 billion, primarily due to a 12.1% increase in the Corporate and Institutional Banking division and a 17.6% rise in Global Markets. Commercial and Personal Banking fees grew by 7.4%, Asset Management saw a 9.8% increase, and Insurance grew by 5.2%. Gross operating income in Q2 2024 climbed 3.4% to €5.094 billion, with net income group share reaching €3.395 billion, an 8.1% increase in earnings per share from the previous year.
Jean-Laurent Bonnafé, CEO of BNP Paribas, stated, “The group performed admirably in Q2 2024, benefiting from our diversified and integrated model. We will continue to focus on operational efficiency and disciplined cost management through the economic cycle, confirming our trajectory for 2024.”
Banco Santander’s Surge
Banco Santander reported significant growth for H1 2024, with attributable profit soaring 16% to €6.05 billion compared to the same period in 2023. This growth was driven by strong performance across all global regions and businesses, a rise in net interest income, and an increase in customer numbers by four million. Revenues surged 10% to a record €31.05 billion, with a return on tangible equity (RoTE) of 15.9%. Earnings per share grew by 19%. The bank revised its financial targets for the year, projecting high single-digit revenue growth and a RoTE exceeding 16%, with an efficiency ratio around 42%.
Ana Botin, President of Banco Santander, remarked, “Revenues grew by 10% in the first half, supported by our global operations, while costs remained nearly stable over four quarters. The 19% increase in earnings per share underscores our sustainable and profitable growth driven by our scale, diversification, and successful transformation efforts.”
UniCredit’s Growth
UniCredit also released its earnings for H1 2024, reporting a 5% increase in Q2 net profit to €2.7 billion, surpassing the market expectation of €2.4 billion and marking a 16% increase from Q2 2023. This performance signifies the fourteenth consecutive quarter of growth for the bank. Net revenue for Q2 reached €6.3 billion, a 6% increase from the same quarter in 2023, while operational costs decreased by 1.7% to €2.3 billion.
The bank has revised its revenue guidance for 2024 to €23 billion and updated its organic capital generation forecast to over 350 basis points, maintaining its net profit guidance above €8.5 billion.
Andrew Orcel, CEO of UniCredit, said, “Our financial results for the first half and Q2 of this year reflect record performance, driven by our ongoing transformation and emphasis on sustainable, quality growth. Our fees have surged, complementing resilient interest income to achieve high-quality, profitable revenue growth.”