Since the imposition of import tariffs by US President Donald Trump on April 2, UBS shares have lost around 14 percent of their value. In contrast, Spanish bank Santander has only declined by about 5 percent.

By the close of trading on Wednesday, Santander’s market capitalization stood at approximately 91,3 billion euros. UBS, by comparison, had a market capitalization of about 85,7 billion euros ($99,37 billion) at yesterday’s market close. In mid-February, this figure was still close to 120 billion euros.

Historic Santander headquarters in Santander (Image: finews)

With this, Santander has overtaken UBS as the most valuable bank in continental Europe. Following in the ranking are France’s BNP Paribas (80,9 billion euros) and Italy’s Unicredit (78,9 billion euros). HSBC remains the most valuable bank in Europe, including the UK, with a market capitalization of 137,8 billion pounds.

More Dependent on the US Market

According to analysts, UBS’s share price has performed significantly worse for various reasons. «UBS is significantly more dependent on the US market than other European banks,» said Morningstar analyst Johann Scholtz in an interview with the «Financial Times» (article behind paywall). Around one-third of UBS’s earnings come from the US.

«UBS is more market-dependent than the average European bank,» Andreas Venditti from Vontobel added. «And it is also more globally diversified than its competitors, which is not helpful in a climate of ongoing de-globalization and geopolitical tensions.»

Regulatory Debate

Moreover, the «ongoing regulatory debate» in Switzerland is the main reason for UBS’s recent underperformance compared to its European and American rivals, Venditti said.

In contrast, Santander has seen strong stock performance. Since January, its share price has risen by more than a third. According to CEO Ana Botín, the market has «recognized the value of the group and the strength of our model.»