Senior executives at major European financial institutions have affirmed their commitment to ambitious dealmaking strategies, even as their investment banking divisions reported disappointing revenue figures for the year 2025. This determination comes against a backdrop of pronounced underperformance compared to their counterparts on Wall Street, who have capitalised on a series of high-profile mergers and acquisitions.
A Stark Transatlantic Divide in Performance
The core dealmaking and advisory units of Europe's largest investment banks collectively experienced a year-on-year decline in revenue throughout 2025. This downturn presents a sharp and unfavourable contrast to the performance of leading American banks. The U.S. firms managed to secure lucrative, leading roles on several major M&A transactions, driving significant revenue growth and highlighting a growing competitive gap.
Leadership Optimism Amid Market Challenges
Despite these headwinds, European banking leaders are projecting confidence. Sergio Ermotti, the chief executive of Swiss banking giant UBS, has publicly expressed optimism regarding the bank's strategic position. He emphasised a positive outlook on UBS's capacity to capture and expand its market share in the global financial landscape, suggesting a long-term view beyond the immediate annual results.
The prevailing sentiment among European bank executives is one of resilience. They indicate that their ambitions for corporate advisory and capital markets activity remain firmly intact. The challenging environment of 2025, characterised by the revenue declines, is viewed not as a deterrent but as a cyclical hurdle within a broader strategic timeline.
