Santander Overtakes UBS as Top Continental European Bank

Banco Santander has surpassed UBS to become continental Europe’s most valuable bank by market capitalization, following a sharp divergence in their share prices triggered by U.S. President Donald Trump's tariff announcements. UBS, with significant exposure to the U.S. market and recent regulatory uncertainty in Switzerland, has seen its shares decline by nearly 15% since April 2, while Santander’s shares have dropped only about 5%, pushing the Spanish bank’s market value to €91.3 billion compared to UBS’s €85.7 billion. Analysts attribute UBS's underperformance to its higher dependency on U.S. earnings, broader global diversification—which has become a liability amid de-globalization trends—and ongoing debates over stricter Swiss capital requirements. The U.S. tariffs and threats of further duties have aggravated the situation for Swiss institutions, while the EU's fiscal initiatives have provided some support for regional banks. This marks a symbolic turnaround for Santander, which had struggled with its share price over the past decade, and highlights the challenges UBS faces in maintaining its leadership position amid global market volatility.