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War in Ukraine has dragged down Europe’s banks, but they aren’t in bad shape

A big drop in third-quarter bond, currency and commodity trading was inevitable

Rising interest rates, bank failures, inflation and wars have all made the sector look worse than it is
Rising interest rates, bank failures, inflation and wars have all made the sector look worse than it is Photo: Thierry Monasse/Getty Images

European investment banks don’t tend to fare well when compared with their more profitable US peers. But the war in Ukraine makes some comparisons unfair.

Investors have been disappointed with the third-quarter results published by top European banks so far, with the stocks collectively down more than 3% this week. This is despite the fact that most of the companies have actually beaten analysts’ profit forecasts by a decent margin.

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