2026 Market View: Financials

Dec 04, 2025

Marc Stacey, BlueBay Senior Portfolio Manager, summarises the market in 2025 for the asset class, and gives his thoughts for 2026.

  • European financials delivered another robust year in 2025, with earnings outperforming for the 27th consecutive quarter, despite lofty market expectations.
  • On aggregate, net interest income appears to remain strong, with particularly strong numbers from the UK banks who are benefitting from structural interest rate hedges they have in place.
  • As we look forward to 2026, the Q4 numbers should continue to be good, and nothing at this stage would lead us to change our bullish view on the fundamentals.
  • While we acknowledge that spreads are tight across credit markets, the relative value in European banks is still significant for achieving attractive carry.
  • AT1 remains a mispriced opportunity within bank capital structures, presenting an attractive opportunity for investors.


Watch all our 2026 Market Views