European Banks: 2026 Q2
What are the key 2025–2026 regulatory changes shaping EU banking?
Navigating the European banking sector requires a clear understanding of the forces shaping the market. Near-term credit quality across European banks remains solid, supported by strong capital positions and resilient balance sheets. However, the macroeconomic backdrop is becoming more complex, with rising unemployment and energy-driven inflation increasing medium-term uncertainty for the sector.
In this Q2 2026 Industry Pulse, Morningstar Equity Research assesses valuation, earnings drivers, and risk dynamics across European banks. While higher interest rates continue to support net interest income through structural hedge tailwinds, valuations suggest that upside opportunities are becoming increasingly selective.
Download now for in-depth analysis which identifies both opportunities and risks.
What’s inside:
- Key takeaways on valuations, interest rate trends, and sector risks.
An in-depth analysis on current market valuations, identifying where opportunities for upside may still exist.
Actionable insights on preferred stocks like BNP Paribas and NatWest Group.