UBS loses the crown as the most valuable bank in continental Europe against Santander

Spanish lender Santander Bank has eclipsed Swiss giant UBS As the largest Bank in continental Europe for market capitalization, as US tariffs extend through the Magulted banking sector of the region.

UBS, whose participation made a deep tumble after the announcement of April 2 of the baseline and the reciprocal duties of US President Donald Trump on the commercial counterparts of Washington, had a market capitalization of 79.5 Swiss Frances ($ 97.23 billion) from the closing of Wednesday, according to FACTSET data, with Banco Santander at 91.3 billion 103.78 billion).

The actions of the two banks have been divented in recent months, with the Swiss lender who threw 17.2% in the year to date, while Banco Santander has won almost 35%, according to LSE data.

Both banks, together with the broader banking sector in Europe, have suffered since the imposition of the White House protectionist policies, given the reduced growth perspective for European countries with tariffs and the perspective of a recession in the United States.

Washington imposed tariffs of 20% to imports from the European Union, but has dropped to 10% under a 90 -day pause announced by Trump on April 9.

Switzerland, who is not a member of the EU, faces a more pronounced tax of 31% after the pause and Trump administration has also threatened additional tariffs in imported drugs. This could hit the Swiss pharmaceutical industry that “grew robust” in the fourth quarter and “contributed significantly” to exports of the country during the period.

In more general terms, the European Union banks received an impulse from the announcement of the ROARM initiative of the European Union in March, which will loosen the regional fiscal rules and triggered an additional loan activity to boost defense spending.

The two largest lenders in continental Europe have very different exhibitions to the US market.

Banco Santander is the fifth largest car lender in the country and is expanding through a recent association with the Verizon telecommunications giant. However, he only recorded about 9% of his total profits by 2024 in the United States.

Meanwhile, the United States is a key market for the lucrative division of Global Heritage Management of UBS, with approximately half of the inverted assets of the Swiss lender concentrated in the widest region of the Americas last year, according to its annual report.

The UBS perspective has also been clouded by an element of uncertainty that surrounds the potential potential and most pronounced capital requirements of the Swiss authorities. This follows its expansion as a result of absorbing the credit of collapsed national pairs, of which an important American presence also inherited. The lender hopes to receive more clarity about these guidelines next month.

UBS’s profitability could also be affected by a strong Swiss Franco, historically a safe shelter asset during market agitation, which has been appreciated in approximately 8% against the US dollar since the imposition of the latest rates.

Switzerland’s appreciative currency, whose strength local commercial groups had marked as harmful to exports even before tariffs came into force, could, together with depressed inflation in the country, see the Swiss National Bank make more defensive cuts to interest rates, which were already reduced to only 0.25% in March.

In comparison, it is also widely expected that the European Central Bank cut its key deposit installation rate in a quarterfinal when it meets later on Thursday, although this will lead to 2.25%.

The possible reduction in the interest rate would be carried out after the ECB said in March that its monetary policy was “becoming significantly less restrictive”, in a sign that some analysts interpreted as a restriction when it comes to further reducing rates.

Decreases in national interest rates generally weigh on income from income from net interests of local loan lenders.