Deregulation under Trump and falling rates add to pressure
European finance MA hit 9year high in 2024, more expected
Big European financial deals still at mercy of politics

LONDON, Jan 13 Reuters For years, pressure on European banks and asset managers to bulk up to better compete with U.S. rivals has been mounting. This year may mark a turning point as more boardrooms explore combinations, say executives, advisers and investors.

European banks have enjoyed a run of record profits and soaring shares in the past two years but they, like the region39;s asset managers, remain far smaller than U.S. peers after American institutions pulled further ahead.

Competition will intensify in 2025 as U.S. Presidentelect Donald Trump takes office, when he is expected to slash red tape for U.S. lenders.

It seems certain MA bankers will be very busy in 2025 with the banks where they work booking record revenues, said Patrick Lemmens, a fund manager at Robeco, who has invested in European banks for decades.

We see clearly more deal activity in areas such as alternative investments and FinTech. Whether there will be an increase in Europe39;s MA deals between banks will very much also depend on politics, even with deals in the same country, he added.

The biggest banking bids last year were unsolicited or hostile and their fate remains uncertain.

This includes BBVA39;s 12 billion euro play for Sabadell in Spain and UniCredit39;s 10 billion euro offer for Italian rival BPM Banco….