The banking sector in Spain has experienced notable growth in 2026, with a 27.3% appreciation in the Ibex 35 index. Analysts warn of the need to be selective given the high valuations.
The sector index Ibex 35 Banks has recorded an appreciation of 27.3% so far in 2026, reflecting the good moment of the sector despite the valuations at their peaks. According to expansion.com, this trend adds to the 112% increase observed the previous year and a historic rise of 494% since the end of 2020.
The main Spanish entities, such as Banco Sabadell and Bankinter, have seen profits ranging from 282% to 954%, highlighting the sector's momentum. However, experts warn that increases of this magnitude are difficult to sustain over time, recommending a more selective approach to investments.
In the first half of 2026, Spanish banks reported a record combined profit of €20.164 billion, an increase of 18% compared to the previous year. This growth has been driven by a 9% increase in total revenues, reaching €65.470 billion.
The credit business has maintained good performance, with a volume of loans to companies reaching €48.064 billion in July. This momentum has led analysts to foresee that entities will maintain aggressive shareholder remuneration plans, combining rising revenues and attractive dividends.
With expectations of new interest rate hikes, which the European Central Bank has already begun to implement, the banking sector is expected to continue benefiting. Analysts predict a positive impact of up to 7.5% on net interest income for entities like CaixaBank and Bankinter in the second year of these hikes.
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