US and European banks secure success in Q2 through strategic maneuvers in threes

In the second quarter of the year, banks have shown remarkable resilience and strategic acumen, as trading revenues surged 17% year-on-year, reaching their highest levels since the first half of 2009. This growth was driven by a rebound in equity markets and strong M&A activity, with announced global M&A volumes tracking 30% above last year's levels.

Several banks upgraded their full-year guidance in Q2, while others signaled greater confidence in hitting existing targets. This optimism is well-founded, as banks maintained a disciplined approach throughout the quarter, balancing cost discipline with efforts to modernize their technology infrastructure and enhance the client experience.

The strategic focus and operational improvements of banks like VP Bank, MTU Group, and Verve Group SE have been particularly noteworthy. VP Bank achieved a significant half-year profit of CHF 28.8 million, while MTU Group increased its adjusted operating profit by about 15% compared to 2024. Verve Group SE demonstrated double-digit growth in Q2 2025 by unifying its platform and optimizing operations for structural efficiency.

Despite the geopolitical tensions and macroeconomic uncertainties, these banks have managed to transform uncertainty into opportunity. Even though banks had increased their loan loss buffers in the prior quarter, anticipating potential stress from trade disruptions, no deterioration in credit quality materialized.

Analysts have started to revise full-year provision estimates downward by 2% for US banks and 1% for European peers, reflecting the sector's ability to weather geopolitical crosscurrents and the slow march toward lower rates. The banking sector appears well-positioned to navigate through these challenging times, demonstrating that strategic execution can indeed turn uncertainty into opportunity.

US and European banks secure success in Q2 through strategic maneuvers in threes