European banks outperform US counterparts on the stock market with high interest rates

European banks show superior performance to the US sector, driven by a high interest rate environment. According to Tikehau Capital, the Stoxx 600 Banks has recorded a revaluation of 19.84% in 2026.

European banks continue to stand out in the stock market thanks to an increase in interest rates. This month, both the European Central Bank (ECB) and the Federal Reserve of the United States (Fed) raised their rates by 25 basis points, and both are expected to make at least one more increase before the end of the year. In this context, European banks are well positioned to benefit from these high rates, with a marked preference for the European sector over the US, according to Raphaël Thuin, Market Strategies Director at Tikehau Capital.

In 2026, the Stoxx 600 Banks index has recorded a revaluation of 19.84%, compared to 2.93% for the US banking sector. To date, several entities in the European index have reported profits exceeding 30%, with Raiffeisen standing out with an increase of 67.75%. In Spain, the banking sector has outperformed both sectors, with a 24.83% increase in 2026, where all entities have had positive results.