The leading banks in Europe have expressed gratitude for the increased interest income over the past year, which was due to competition from the United States. According to calculations by EY, the net profit of the ten largest banks in Europe saw a substantial increase of 29 percent, reaching almost 100 billion euros. This is the highest value in the past decade. In comparison, the top ten US institutions experienced a four percent increase in net profit, totaling around 146 billion euros. JPMorgan Chase emerged as the leader in consolidated earnings, followed closely by UBS.
EY partner Ralf Eckert noted that major European banks have made significant progress in key metrics compared to their American counterparts. They were able to capitalize on the increase and normalization of interest rates, resulting in higher profits. The return on equity for the ten European financial institutions included in the evaluation was 10.9 percent as of December 31, 2023, while US institutions maintained an 11 percent rate. This indicates the efficiency with which companies utilize their equity capital.
Despite their progress, European banks still hold a significant disadvantage when it comes to market capitalization compared to US institutions. As of December 31, 2023, the total market capitalization of the top ten US banks was 1.32 trillion euros