Barclays Plc and Deutsche Bank AG have announced better-than-expected financial results for the third quarter. This is due to the positive impact of sustained high interest rates, which have increased revenue and secured future income for both banks.

The banks have benefited from central banks' slower-than-expected easing of monetary policy, which has helped maintain income from existing loans and securities with floating rates. Additionally, the strong inflation and growth in various countries have resulted in significantly higher yields in interest-rate derivatives markets. As a result, both banks have been able to effectively hedge their revenue from lending and depositors through substantial interest-rate swap trades.

However, they still face the challenge of proving their investment banking capabilities against US competitors in order to gain a larger share of next year's dealmaking and stock sales.