European banks Q2 earnings preview
Analysis based on 6 articles · First reported Jul 21, 2026 · Last updated Jul 21, 2026
The positive earnings outlook for European banks supports the sector's recent stock performance, with the EURO STOXX Banks Index doubling over two years. However, the Iran war and potential economic slowdown could temper gains, and U.S. banks' outperformance may limit European banks' relative attractiveness.
European banks are expected to report strong second-quarter earnings, with Goldman Sachs forecasting an 11% year-on-year increase in pretax profit. The gains are driven by higher interest rates, increased lending, and a boost from trading and investment banking amid volatility from the Iran war. Key banks reporting include UniCredit, Santander, BNP Paribas, Barclays, Deutsche Bank, UBS, and Banco Bilbao Vizcaya Argentaria. The International — European Commission has outlined plans to facilitate cross-border banking mergers. However, concerns about rising bad debt provisions and the impact of the Iran war on the European economy persist. U.S. banks continue to outperform European peers in investment banking.
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