- European banks including UBS, Santander, BNP Paribas and Deutsche Bank are rebuilding their US investment-banking presence for 2025–26 by hiring senior dealmakers and adding sector teams.
- Even with near-record 2025 dealmaking fees (~$103bn), US banks took ~56.5% of global fees while European banks fell to ~19.9% globally and ~11.4% in US-home deals.
- UBS is targeting a top-six global ranking and ~3% US investment-banking share after hiring ~25 senior dealmakers in 2025 with more planned in 2026.
- Santander’s multi-year US build-out targets ~200 senior hires, with the Americas projected to deliver ~20% of C&I revenue and US M&A fees up about 30%.
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European banks—after years of retracting in dealmaking influence especially in the US—are clearly mounting a push to claw back market share and relevance. Key drivers include the retreat of HSBC from US equity capital markets, the collapse and absorption of Credit Suisse by UBS, and what many view as a peak in Wall Street valuations and client demand in 2025. These institutions are now accelerating hiring in senior positions, particularly in sectors aligned with cross-border, high growth or strategic importance (e.g. tech, healthcare, metals, mining, defense).
UBS is perhaps the most aggressive of the bunch: its acquisition of Credit Suisse not only doubled its investment banking bench in the US, but its co-president has made public goals of rising to a top-six global bank by fees, securing ~3% market share in US investment banking, and significantly increasing its presence in sectors like technology and healthcare. The risk constraints posed by regulatory capital and risk-weighted asset caps remain real, but its revenue jump (~52% in Q3 2025) suggests strong momentum.
Santander’s strategy is more methodical, building “banking buildout” over years. With a target of ~200 senior banker recruits, it aims to embed sector expertise, capture larger M&A mandates, and raise US revenue to ~20% of its global Corporate & Investment Banking division. That the unit is generating ~20% after only two years suggests steep growth, though sustaining that depends on consistently strong deal flow, talent retention, and competitive differentiation.
At the macro level, European banks collectively are underperforming in global league tables despite stronger dealmaking activity in Europe (M&A in Europe rose ~22% in 2025 to ~$894 billion). IPO/ECM activity remains weak in Europe, and European banks’ share of US deal fees, though inching upward (from ~11.1% in 2023 to ~12.6%), is still a fraction of their former strength. Regulatory, cost and scale disadvantages persist—especially for firms with less diversified futures or smaller balance sheets. The path forward likely involves selective competition in sectors or deal types, emphasizing cross-border deals, and leveraging international client relationships.
What remains uncertain: whether US firms will proactively defend share via price competition or client exclusivity; whether capital costs or regulation will limit European banks’ ambition; and if macro headwinds (rates, recession risk, political frictions) will dampen the projected surge in dealmaking in 2026.
Supporting Notes
- 2025 global investment banking dealmaking fees were ~$102.9 billion, second highest on record, with U.S. banks earning ~$59.1 billion and European banks bringing in ~$21.5 billion (~19.9%).
- In Wall Street-type US-home deals, U.S. banks secured ~77% of fees; European banks’ share was ~11.4%, close to a record low.
- UBS hired ~25 senior dealmakers in 2025 (majority in the Americas); plans similar scale hiring in 2026; aims for 3% U.S. investment banking market share and a top-six global fee ranking.
- Santander’s build-out strategy: aiming to recruit ~200 senior bankers in the U.S., with US revenue projected to be ~20% of its C&I banking revenues in the current year; its US M&A fees reportedly jumped ~30%.
- European banks’ fee share in U.S. dealmaking rose modestly to ~12.6% (in 2025) from ~11.1% in 2023; contrasted with ~25-30% in pre-2008 years.
- M&A deal value in Europe increased ~22% YoY to ~$894.5 billion in 2025; IPO/ECM proceeds in Europe were weak (~$19.4 billion), though pipelines for 2026 appear stronger.
- Deutsche Bank plans to increase fixed income revenues in the Americas by ~20% between 2023-2027; added ~600 staff in its Americas operation over three years, many at senior levels.