Source: GlobalData
The top 20 Europe, Middle East, and Africa (EMEA) banks saw a healthy 14% increase in combined revenue from $1.4 trillion in 2023 to $1.6 trillion in 2024, despite a challenging macroeconomic landscape defined by geopolitical friction, rate normalization, and tariff uncertainties, reveals GlobalData, a leading data and analytics company.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “European central banks implemented multiple rate cuts throughout 2024, reversing the aggressive hiking cycle of previous years. This easing supported lending growth, improved credit demand, and stimulated consumer and business activity. However, declining interest margins also pressured net interest income, forcing banks to rely more heavily on fee income and trading operations.”
Ranked by revenue, HSBC Holdings led the EMEA region with $157.8 billion, followed closely by BNP Paribas ($148.6 billion) and Banco Santander ($147.2 billion). These institutions capitalized on diversified international exposure and stable credit portfolios in a year marked by both opportunities and headwinds.
Notably, revenue growth across the board was largely positive, with all 20 banks reporting year-over-year (YoY) gains. Russia’s Sberbank Rossii and VTB Bank recorded the highest revenue growth rates at 54.0% and 48.4%, respectively. These gains likely reflect ruble depreciation effects, domestic market dominance, and a pivot toward internal financial resilience amid ongoing Western sanctions.
Southern European banks also delivered strong results. BBVA posted a 30.3% increase in revenue, driven by robust lending activity in Latin American markets and digital transformation initiatives. Spain’s Banco Santander reported a 6.8% revenue growth and a 13.6% rise in net income, showcasing stable margins and improving
Among French institutions, Societe Generale stood out with a 68.5% surge in net income, despite moderate revenue growth of 10.6%. The recovery in profitability is attributed to a successful cost-reduction program and a rebalancing of risk-weighted assets. Credit Agricole and BNP Paribas also performed well, underpinned by strong corporate banking and wealth management divisions.
In the UK, HSBC and Barclays continued to benefit from diversified global operations. HSBC saw a modest 1.9% increase in net income on a 6.7% revenue gain, reflecting stable interest income and expanding operations in Asia. Barclays’ 12.0% revenue growth and 23.3% net income jump reflect efficiency gains and rising fee-based income.
Conversely, UBS Group AG posted the sharpest decline in net income, down 81.4% despite a strong 22.3% rise in revenue. This anomaly is likely linked to the integration of Credit Suisse, involving one-time restructuring costs and asset impairments.
German and Dutch banks experienced moderate top-line growth but faced downward pressure on earnings. Deutsche Bank’s net income fell by 29.4% despite a 12.0% revenue increase, potentially due to elevated risk provisions and a cautious lending stance amid economic uncertainty.
Grandhi concludes: “Looking ahead, EMEA banks face a challenging 2025. The escalating tariff war between major economies, combined with continued geopolitical tensions in Eastern Europe and the Middle East, is expected to create volatility in capital markets and cross-border trade.
“Rising operational costs, currency fluctuations, and potential regulatory shifts may compress margins. However, banks with strong digital infrastructure, diversified geographical exposure, and robust capital buffers—such as HSBC, Santander, and BNP Paribas—are better positioned to absorb shocks.
“While revenue momentum is likely to continue in the short term, profitability may come under strain. Institutions will need to prioritize operational efficiency, credit risk management, and strategic realignment to navigate an increasingly fragmented global financial landscape.”