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UBS, Société Générale, and Barclays have recently benefited significantly from the market disruptions caused by US President Donald Trump’s tariffs, with traders propelling these banks to exceed their expected profits for the first quarter.
UBS’s market sector saw a 32 percent surge in revenues, reaching a record $2.5 billion. Similarly, Société Générale’s trading revenues rose by 11 percent to €1.76 billion, while Barclays enjoyed a 16 percent increase to £2.7 billion.
Since Trump’s return to the White House in January, his unpredictable tariff strategies have greatly influenced global stock, bond, and currency markets, creating volatility as investors navigate the consequences of his efforts to reshape international trade.
UBS remarked on Wednesday: “Market conditions are likely to stay responsive to new information, whether favorable or unfavorable, which may result in additional volatility spikes.”
This impressive performance in trading helped the three banks achieve better-than-expected profits for the quarter, buffering against the impact of a downturn in deal-making during the same timeframe.
UBS reported a net profit of $1.7 billion for the quarter, exceeding analysts’ predictions of $1.3 billion, though it was a decline from $1.8 billion during the same quarter last year. Revenues remained steady at $12.6 billion.
Société Générale’s net income more than doubled to €1.6 billion, while Barclays’ profits rose to £1.9 billion, up from £1.6 billion last year, and above forecasts.
The three banks are now part of the financial giants on Wall Street benefiting from market fluctuations. JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, and Citigroup collectively earned nearly $37 billion in trading revenues for the quarter.
At Société Générale, the equities trading segment stood out, with revenues climbing over 20 percent to a record €1.06 billion. Barclays also saw a 21 percent boost in revenues from its fixed-income trading operations, and its equities revenues increased by 9 percent.
UBS’s trading results eclipsed its global wealth management division, which has been the bank’s primary source of profit in recent years.
This division added $32 billion in new assets during the period, with a pre-tax profit of $1.4 billion driven by increased fees.
CEO Sergio Ermotti stated: “The strength and scale of our diverse global operations, alongside our ongoing client focus, propelled strong business momentum this quarter and net new inflows in our asset-gathering sectors.”
Ermotti, who returned to oversee the bank’s integration of former competitor Credit Suisse in 2023, noted that the process is “on track.” UBS is currently transitioning over 1 million Swiss retail clients to its systems, which is one of the most intricate aspects of the integration.
