European banks gain ground as US-China tensions prompt corporate shift

Amid escalating trade tensions between the US and its global partners, European banks are seeing a surge in business as companies begin shifting away from Wall Street giants.

Data compiled by Bloomberg shows that about half of the euro bond deals from non-US companies this year excluded the five biggest US banks—up five percentage points from 2024. In sterling bonds, the gap is wider: Wall Street banks were left out of 64% of deals so far this year, compared to 47% in all of last year, Caliber.Az reports. 

The shift is driven by concerns over trade-related uncertainty, with companies opting for local or regional financial institutions instead.

“Some players are saying that it’s better to go to European or French investment banks for advice on financing or mergers and acquisitions,” said Arnaud Petit, managing director at Edmond de Rothschild. Deutsche Bank CEO Christian Sewing added, “It is happening every day with client wins and RFPs and new business that we put on.”

The trend extends beyond Europe. In Asia, the reconfiguration of global trade has pushed companies to reassess their banking partners. “The willingness of companies in Asia to change their transaction bank is currently at a high: a third of them plan to issue a new RFP within the next 12 months,” said Ruchirangad Agarwal of Coalition Greenwich.

JPMorgan Chase CEO Jamie Dimon acknowledged the early impact of trade tensions last year, noting the bank had lost “a couple” of bond deals due to tariff-related concerns. He warned the situation was “causing cumulative damage including huge anger at the United States.”

Recent deals reflect this shift. Zurich-based Chubb Ltd. chose Standard Chartered Plc to manage an offshore yuan-bond, bypassing US banks. “We want to bank with the regional champions, rather than just with global banks in general,” said Standard Chartered CFO Diego de Giorgi. “Because we think that you guys bring specific skills in a world that is fragmenting.”

Martin Smith of East & Partners noted US lenders’ market share in financing Chinese trade has dropped from 12% in 2017 to 7% now. “We expect to see heightened uncertainty and customer churn at US banks,” he said.

European banks are seizing the opportunity. “We believe we are well placed to continue to benefit from that diversification,” said UBS CEO Sergio Ermotti. BNP Paribas has reportedly gained the most market share in Asia, while Societe Generale’s Slawomir Krupa pointed to a broader realignment: “There are clearly strategic opportunities in the tectonic shifts that the world has been seeing in recent months… The logic behind this form of risk diversification has become more apparent for companies.”

By Sabina Mammadli