FT News Briefing European investment banks’ killer year
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Feb 25, 2026 
Hamza Jelani, an FT reporter with on-the-ground experience in Afghanistan, and Simon Foy, an FT banking correspondent expert on trading and markets. They discuss European banks’ decade-beating trading revenues and what drove last year’s boom. They cover risks to banks, outlooks for 2026 trading, Wayve’s $1.2bn raise, and the mass return of Afghans and its economic impact.
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Why European Banks Had A Record Trading Year
- European investment banks saw trading revenues jump more than 10% on average year‑on‑year in 2025.
- Simon Foy ties the surge to geopolitical shocks (tariffs, Trump) and an AI‑driven tech bull run that spiked client trading activity.
Volatility Is The Trading Desks' Fuel
- Volatility boosts trading revenues because clients trade more to exploit dislocations and rebalance portfolios.
- Simon Foy lists hedge funds, pension funds, and corporates hedging FX, rates and commodities as main sources of activity.
Trading Gains Can Mask Dealmaking Pain
- Strong trading can coincide with weak advisory and capital markets as volatility disrupts dealmaking.
- Fewer IPOs, slower M&A and tougher debt issuance offset some banks' overall profits.