Paul J. Davies, Columnist

Deutsche Bank, HSBC Show There’s Life Beyond America

European banks are optimistic the rest of the world will continue taking care of business.

April 29, 2025 at 12:39 PM UTC

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

Better-than-expected earnings from Deutsche Bank and HSBC show there's life beyond the US.
Photographer: Jason Alden/Bloomberg

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Deutsche Bank AG and HSBC Holdings Plc see the world getting on with business in many ways even as the US shoots its own economy in the foot. President Donald Trump’s tariff war will hurt global trade and output if it continues — but both European lenders see potential benefits from America’s act of self-harm.

The two banks reported first-quarter earnings on Tuesday that came in better than hoped. Deutsche Bank’s pretax profit of €2.8 billion ($3.2 billion) was its best since the start of 2011. The German lender was buoyed by very strong activity on its bond and currency trading desks and a step up in the profitability of its German consumer and small business bank.