2025-04-08 11:50
publication
2025-04-08 11:50
Last European banks, the largest European banks again lost their position in relation to their competitors from the United States. Over the past ten years, the net profit of American banks has consistently exceeded the results of leading European banks.
The leading banks of Europe are again behind the competitors from the USA. According to the analysis of the EY advisory and judicial company The ten largest American institutions earned a total of over twice as much as their European counterparts last year.
The net profit of the ten largest US banks increased by almost a quarter (24%) during the year and achieved a value of over 180 billion euros, which is a result only slightly lower than the record of 2021, when it was almost 184 billion euros. JPMorgan Chase remained a definite leader with a profit of around EUR 56.5 billion.
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In turn, the ten largest European banks in terms of the balance sheet sum reached a total profit of approximately EUR 85 billion, which is 13% less than in their best year, 2023. The best result among European banks was achieved by Banco Santander with a profit of about EUR 12.6 billion.
Recipe for the success of American banks
It contributed to the growth in the USA according to the EY analysis above all A growing number of stock debuts and more orders related to acquisitions and mergers. In addition, American banks benefited from higher interest income and growing property management revenues. That is why – as the EY partner Ralf Eckert emphasizes – a strong income position of banks from the US should not surprise.
Also in terms of profitability, the difference again deepened: after European banks for the first time in 2023 matched the profitability of American competitors, for 2024 the rate of return from equity of 12.2% in the USA compared to 9% in Europe is forecast for 2024. The profitability of own capital is profitable to the capital and shows how effectively the company used these funds.
Difficult perspectives on both sides of the Atlantic
Perspectives – as the EY partner, Ralf Eckert points out – are uncertain on both sides of the Atlantic: “In the context of an unstable and tense geopolitical situation, we expect a difficult year for the banking sector, both in Europe and in the USA.”
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