European Banks Among Biggest Winners as Global Bank Valuations Surge in Q2, GlobalData Finds | LeapRate
Global bank valuations rose sharply in the second quarter of 2026, with European lenders among the standout performers as higher interest rates, capital returns and a revival in investment banking activity reshaped the rankings, according to research by GlobalData.
According to the firm, JPMorgan Chase retained its position as the world’s most valuable bank, with market capitalisation up 8.9% year-on-year, reflecting investor confidence in its diversified business model and consistent fee generation.
Morgan Stanley jumped from eighth to fourth place globally, with a 45.9% gain driven by record wealth management revenues and a resurgent initial public offering and mergers and acquisitions pipeline.
Goldman Sachs rose 37.4%, while Citigroup surged 50.2% as chief executive Jane Fraser’s restructuring programme improved efficiency and enabled share buybacks.
HSBC was among the most notable movers, rising 54.4% to fifth globally. GlobalData attributed the gains to chief executive Georges Elhedery’s overhaul, record pre-tax profit and the benefit of higher-for-longer interest rates on its large deposit base.
European banks delivered some of the strongest valuation expansion globally. Santander rose 65.4%, BBVA gained 59.6%, UniCredit climbed 29.7% and BNP Paribas advanced 27.1%.
GlobalData analyst Murthy Grandhi said rotation from expensive U.S. technology stocks into cheaper European value amplified the gains.
Japanese banks also attracted renewed interest, with Mitsubishi UFJ Financial Group up 42.2% and Sumitomo Mitsui Financial Group rising 53.9%, as the Bank of Japan’s gradual monetary policy normalisation improved long-term earnings prospects.
Not all banks participated. HDFC Bank fell 27.4% following a governance shock, while ICBC slipped amid weaker Chinese credit demand and property market stress.
