From CNBC: 2025-04-17 05:52:00

Banco Santander overtakes UBS as Europe’s largest bank by market cap amidst U.S. tariffs impacting banking sector. UBS shares drop 17.2% while Santander gains nearly 35%. EU banks face challenges from protectionist trade policies, with Swiss pharmaceutical industry at risk from tariffs. EU’s ReArm initiative aims to boost defense spending.

Banco Santander and UBS have contrasting U.S. exposures. Santander, fifth-largest auto lender in U.S., sees 9% of profits from Stateside. UBS’s wealth management division heavily tied to U.S. market, facing uncertainty over Swiss capital requirements post-Credit Suisse absorption. Swiss franc appreciation may impact UBS profitability.

Switzerland’s strong currency and potential interest rate cuts could affect UBS’s financial outlook. European Central Bank expected to trim rates, impacting local lenders’ net interest income revenues. UBS anticipates clarity on capital rules next month. U.S. tariffs and EU trade policies continue to shape European banking landscape.

Read more: UBS loses crown as continental Europe’s most valuable bank to Santander