After years of low or even negative benchmark rates, Europe’s lenders are finally getting a much-anticipated boost as central banks across the world tighten monetary policy to combat surging inflation.
UBS Group AG on Tuesday said higher interest rates should boost revenue at its wealth management business. HSBC Holdings Plc is already benefiting from increases in its home market. And Banco Santander SA, whose loan book topped 1 trillion euros ($1.1 trillion) for the first time, is poised to boost margins as borrowing costs rise in markets including the U.K., the U.S. and Poland and potentially also the euro area this year.
