European Banks Beat Third-Quarter Profit Forecasts

Deutsche Bank, BNP Paribas, Standard Chartered and Santander beat third-quarter profit forecasts, while UBS reported results broadly in line and moved to accelerate share buybacks. The results helped soothe concerns after European bank shares fell about 10% amid worries over government-debt exposure, economic weakness and fading benefits from higher interest rates. HSBC’s weaker-than-expected update had reinforced fears that deposit competition and slowing interest income could pressure future earnings, while investors’ high expectations kept market reactions mixed. BNP cited strong equities trading and announced a share buyback, and Standard Chartered raised its targets; Santander’s results were tempered by weakness and higher provisions in Brazil.