Swiss banking giant UBS said Wednesday that its net profit doubled in the second quarter thanks to a surge in transactions during global market volatility.

Despite the uncertainty triggered by the US announcing stiff tariffs on its trading partners — only to roll them back partially as it negotiates deals — UBS said its clients remained ready to invest.

"Investor sentiment remains broadly constructive, tempered by persistent macroeconomic and geopolitical uncertainties," Switzerland's biggest bank said.

"Against this backdrop, our client conversations and deal pipelines indicate a high level of readiness among investors and corporates to deploy capital, as conviction around the macro outlook strengthens," it added.

The bank's net profit for the April through June period beat market expectations at $2.4bn.

UBS posted a more modest 2% increase in revenue to $12.1bn, noting that institutional clients were "very active" while private clients had a "more muted sentiment".

"We sustained robust momentum during a quarter that started with extreme volatility by staying close to our clients," chief executive Sergio Ermotti said in a statement.

"We are positioning for long-term success by further enhancing our global capabilities, investing in our future infrastructure and AI, while actively engaging in the debate on future regulation in Switzerland." As for major US banks, the high-volatility climate boosted equity trading for UBS, helping to offset pressure on products linked to interest rates.

The bank's second-quarter results paint "a positive picture", said Ausano Cajrati Crivelli, an analyst at Zurich Cantonal Bank.

The integration of Credit Suisse "is proceeding according to plan, income has increased, costs have been kept in check", he added.

Credit Suisse, UBS's closest domestic rival, imploded in March 2023, prompting the Swiss government, the central bank and regulators to strong-arm UBS into a quickfire $3.25bn takeover.

UBS said it had completed the migration of Credit Suisse client accounts booked outside Switzerland onto the UBS platform, while Swiss booking centre migrations are expected to be done before April 2026.
Intesa San Paolo
Intesa San Paolo posted an increase in second-quarter net profit on Wednesday, above analysts' expectations, as Italy's largest bank stood by its full-year outlook.

Quarterly net profit was €2.6bn ($3.0bn), up from the nearly €2.5bn in the quarter a year earlier.

That was above analysts' average expectations for profit of €2.4bn.

Operating income rose by 3% in the quarter to €7.0bn, the bank said.

For the first half of 2025, Intesa Sanpaolo posted a 9.4% rise in net profit to €5.2bn, helped by robust first-quarter earnings.

In May, it posted a 13% rise in net profit, coming on the heels of a record 2024.

The bank reiterated Wednesday that it still anticipated full-year net income at "well above" €9bn.

Italy's banking and insurance sector has been shaken by hostile takeover attempts from the largest players, though Unicredit — Italy's second-largest bank — dropped its bid for Banco BPM earlier this month.

Intesa Sanpaolo has stayed out of the turmoil, as its top position reduces its acquisition options, given antitrust rules.
Prada
Prada on Wednesday posted a robust 9% revenue rise in the first half of 2025, buoyed by its youthful Miu Miu line and despite a challenging environment for luxury fashion.

The company — which announced in April it was buying rival Versace for €1.25bn— also saw its first-half net income rise slightly to €386mn from the year-ago €383mn.

Prada has largely been able to skirt a slowdown in the luxury goods market that has affected its rivals.

But sales of the Prada brand — representing more than two-thirds of revenue — fell 1.9% in the first half.

Revenue at Miu Miu, its line targeted to younger clients, jumped 49% year-over-year in the first half of 2025, the company said.

The Asia Pacific region was again the revenue driver for the company, with its overall retail sales in the first half up 10 % on a constant currency basis.

The company posted a 12% revenue rise in the Americas region, helped by tourist demand in the second quarter, and a 9-percent rise in Europe.

Prada said its Versace acquisition would close in the second half of the year.
GSK
GSK expects to deliver annual sales and profit growth towards the top end of its forecasts after beating second-quarter expectations on Wednesday, in a boost to its efforts to fuel growth despite product development and tariff challenges.

The British drugmaker is hoping to reach annual sales of over £40bn ($53.44bn) by 2031, even as it faces potential pharmaceutical tariffs and drug pricing pressure in the world-leading US market.

"We're very well positioned and continue to be part of investments so that our portfolio in the US is more and more supplied from the US," CEO Emma Walmsley told journalists.

She added that GSK was also in talks with President Donald Trump's administration, which is pushing drugmakers to cut prices, but offered few details.

The US pharmaceuticals market — worth around $635bn — makes up slightly over half of GSK's sales and is central to its growth plans.

GSK said it had accounted for levies already implemented by Washington and expected tariffs on Europe's exports under a new US-EU trade deal, as well as possible duties resulting from a US investigation into pharmaceutical imports.

It expects 2025 revenue to increase between 3% and 5%, with core profit per share growth of 6% to 8% at constant currency rates.

GSK is focusing on expanding its product pipeline as it faces rising competition and declining sales of top drugs and vaccines.

It expects five new major approvals this year.

While second-quarter turnover growth of 6% to nearly £8bn and earnings of 46.5 pence per share beat analyst estimates, investors are focused on GSK's pipeline as it awaits a final US approval verdict on cancer drug Blenrep.

Analysts say a rejection might force GSK to rethink its 2031 sales target as it is also bracing for patent expirations in its HIV portfolio.


HSBC
Bank giant HSBC said Wednesday that group profits fell in the first half on higher costs but noted that it was "well positioned" to deal with the effects of US tariffs.

Profit after tax dropped by one third to $12.4bn compared with the first six months of 2024, hit by restructuring costs and an impairment on its stake in a Chinese lender.

The London-headquartered bank is months into a shakeup aimed at simplifying the group's structure and delivering $1.5bn in annual cost savings in 2027.

It comes as the bank sector faces volatile trading as a result of US President Donald Trump's tariffs onslaught.

"We have delivered these results in an ongoing period of uncertainty," chief executive Georges Elhedery said in call with reporters Wednesday.

"It has become increasingly important to simplify the organisation and make it more agile," he added.

The bank recorded a $2.1bn impairment linked to its stake in China's Bank of Communications, which was recapitalised by the country's finance ministry this year.

HSBC last year reported a $3bn charge on the value of its stake in the Chinese lender, which was hit by property loan writeoffs.

Elhedery said that HSBC is "making positive progress" in its structural overhaul, which began in October, shortly after he became chief executive.

Operating expenses increased 4%, which the bank partly attributed to restructuring and related costs.

The bank generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.

Elhedery said HSBC is "well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including in relation to tariffs".

He noted that a "broader macroeconomic deterioration" could impact returns in future years.

Profit before tax fell more than 26% to $15.8bn, falling short of analyst expectations.

First-half revenue declined 9% to $34.1bn.

"Repositioning HSBC is not a simple task given its size and scale," said Russ Mould, investment director at AJ Bell.

"There are also challenges in its priority regions such as property market weakness in Hong Kong and mainland China.

"It means investors must continue to brace themselves for setbacks in its results well into 2026," he added.
Telefonica
Spanish telecoms giant Telefonica reaffirmed its 2025 financial targets on Wednesday despite posting a net loss in the second quarter due to adverse currency movements and Latin American divestments.

The heavily indebted company reported a net loss of €51mn ($58mn) for the April-to-June period, compared with a profit of €447mn during the same period last year.

Telefonica attributed the losses primarily to negative exchange-rate effects in several of its operating markets, as well as write downs stemming from the sale of subsidiaries in Argentina, Ecuador, Peru and Uruguay.

Excluding these extraordinary items — already costing the group €1.3bn in the first quarter — Telefonica said it would have recorded a net profit of €155mn in the second quarter.

"We are making progress in defining our strategic review, but in the meantime, we continue executing our mandate for the year with discipline," Telefonica chairman Marc Mutra said in a statement.

Results from the company's ongoing strategic overhaul are expected to be presented by year-end.

Telefonica reiterated its 2025 targets, including for a rise in revenue, cash generation like that of last year and a shareholder remuneration of €0.30 per share.
BAE Systems
British military equipment maker BAE Systems on Wednesday lifted its full-year outlook after profits rose in the first half and as governments hike spending on defence.

Net profit grew 2% to £969mn ($1.3bn) in the six months to June 30 compared with one year earlier, BAE said in an earnings statement.

Sales grew 9% to £13.6bn for the group whose military machines include fighter jets, missile launchers, nuclear submarines and tanks.

"Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance," BAE chief executive Charles Woodburn said in the release.

"In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world," he added.

Nato recently committed to spend 5% of annual output on defence by 2035, seen as vital to counter the threat from Russia and keep US President Donald Trump engaged with the alliance.

"This represents a significant increase from the previous benchmark of two % of GDP," BAE noted Wednesday.
Adidas
Adidas shares fell 7% in early trade on Wednesday after the sportswear brand's second-quarter sales missed expectations and it warned higher US tariffs would add around €200mn ($231mn) to costs in the second half.

Highlighting the impact of US President Donald Trump's volatile trade policies, Adidas said it may have to hike prices in the US and that uncertainty was holding it back from increasing its annual guidance.

"We still do not know what the final tariffs in the US will be," CEO Bjorn Gulden said in a statement. "We also do not know what the indirect impact on consumer demand will be should all these tariffs cause major inflation." Adidas will review its pricing and decide which products it could hike prices on in the US, once tariffs are finalised, Gulden told journalists on a conference call, declining to say how much prices might increase.

"We will try to keep the prices on known models (stable) as long as we can, and then do new pricing on product that hasn't existed before," he said.

Adidas sales, adjusted for currency swings, grew 2.2% to €5.95bn ($6.9bn) in the quarter, lower than analysts' average estimate of €6.2bn, according to data compiled by LSEG.

The shortfall will likely fuel fears that, after a run of very strong sales growth fuelled by its trendy three-striped multicoloured Samba and Gazelle shoes, Adidas is losing momentum.

Quarterly operating profit reached €546mn, ahead of analysts' expectations for €520mn, and gross margin increased by 0.9 percentage points to 51.7% thanks to reduced discounting and lower product and freight costs.
Mercedes-Benz
A new trade deal struck between the US and European Union is good news despite fears it is unbalanced, Mercedes-Benz said Wednesday after the German carmaker reported a tariff hit of hundreds of millions of euros in the second quarter.

"I have respect for what the EU commission and (trade commissioner) Maros Sefcovic and co have worked up in the past few months", chief executive Ola Kaellenius told reporters on a call. "It will help us rather than damage us".

US President Donald Trump and EU Commission President Ursula von der Leyen announced a deal Sunday taking the US tariff on imported cars to 15%, down from 27.5%.

But critics in Europe including France's Prime Minister Francois Bayrou have castigated the deal as one-sided since it foresees no baseline tariff on US goods entering the EU.

"Zero is not a gift to the Americans in this context," Kaellenius said, since German carmakers were "the biggest exporters" into the EU from the US.

About two-thirds of the vehicles which Mercedes-Benz makes at its Tuscaloosa plant in the US were exported out of the country, Kaellenius said, adding that Mercedes-Benz was looking to ramp up production in places where it made most economic sense.

Without tariffs the firm's car business would have achieved a profit margin of 6.6% compared to an actual 5.1%, Mercedes-Benz said, on overall sales of €24.2bn at the cars division for the quarter.

Overall net profit plunged nearly 70% to €957mn ($1.1bn), hit by the tariffs as well as weak sales in China, prompting Mercedes-Benz to lower its full-year revenue outlook.

The firm now forecasts groupwide revenue to be "significantly below" the €146bn it took in last year.

Back in February it expected 2025 revenue to be "slightly below" the 2024 level.

Trump in April slapped an additional 25% levy on imported cars as part of an aggressive trade policy he says will help boost US manufacturing.

That hit European carmakers, with Jeep- and Citroen-owner Stellantis as well as auto giant Volkswagen all reporting slumping North American sales at recent results.
Santander
Spanish banking giant Santander reported on Wednesday a record net profit for the first half of 2025 as strong customer growth helped offset lower interest rates in the eurozone.

The lender, which has a strong presence in Latin America and Europe, posted a net profit of €6.83bn ($7.89bn) for the first six months of the year, up nearly 13% from €6.06bn in the same time last year.

The result slightly exceeded analysts' expectations of €6.7bn, according to a Factset poll.

"This marks the strongest first half on record," the bank said in a statement, attributing the strong performance to the addition of 8mn new customers, bringing its global client base to 176mn.

The influx of new clients led to a 4.0% rise in deposits, and a 3.0% increase in fee income, which reached €6.68bn.

These gains helped counterbalance a 3.0% drop in the bank's net interest income, following a June rate cut by the European Central Bank that put pressure on lending margins.

"Amidst continuing geopolitical uncertainty, we are on track to meet all our targets for the year," Santander executive chair Ana Botin said in the statement.


Starbucks
Starbucks announced lower-than-expected quarterly earnings Tuesday but insisted the numbers do not reflect what the US coffee chain giant called progress in a business turnaround plan.

Third quarter revenue fell 3.8% to $9.46bn, it said.

Because of higher operational costs, profits plummeted 47% to $558.3mn — far below the $732mn that market analysts had expected.

"While our financial results for the quarter don't yet reflect all the progress we've made, I see meaningful signs from across our US business that we're on the right path," Brian Niccol, CEO for the past 10 months, said in a call with analysts.

Starbucks chief financial officer Cathy Smith said the company is making inroads.

"We are making tangible progress in our 'Back to Starbucks' strategy," she said in a statement.

Smith said a tax charge had shaved 11 cents off earnings per share, leaving it at 49 cents.

Same store sales fell 2% in North America.

They were stable worldwide but rose 2% in China due to an increase in the number of store transactions, although the cost of the average customer order fell 4%.

"We are clearly in the early stages of our turnaround in the US, but our work is gaining momentum in our international business," said Niccol.
Nissan
Struggling Japanese automaker Nissan reported a hefty first-quarter loss on Wednesday and declined to give a full-year earnings forecast.

The heavily indebted firm, whose mooted merger with Honda collapsed this year, is slashing jobs and closing factories in an attempt to return to profit.

On Wednesday it said it posted a net loss of ¥116bn ($784mn), while revenues tumbled almost 10% year-on-year to ¥2.7tn.

"(Given) the difficulty in forecasting the business environment surrounding the company at this time, the outlook for operating profit, net income, and auto free cash flow for the fiscal year remains undetermined," it said.

Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands.

Of Japan's automakers, Nissan is also seen as the most exposed to US President Donald Trump's 25% tariff imposed — now cut to 15% — on imported Japanese vehicles.