The European banking sector is showing a split picture in the 2026 earnings season.
HSBC, Europe's largest bank, reported a 1.1% drop in pre-tax profit to $9.38 billion, missing analyst forecasts. The main drag was a surge in credit impairment charges to $1.3 billion, tied directly to the Middle East conflict, according to Interactive Investor's Richard Hunter. Despite this, HSBC's wealth management division saw an 18% rise in fee income, driven by its Asian pivot.
In contrast, Italy's UniCredit posted a 16% rise in net profit to €3.2 billion, beating market expectations. This strong start led the bank to upgrade its full-year 2026 net profit outlook to at least €11 billion.
Meanwhile, AB InBev reported steady revenue growth of nearly 6%, with beer volume up 1.2%. Its no-alcohol beer revenue surged 27%, and the company continues to focus on digital transformation.
Investors are now weighing the impact of high interest rates and geopolitical tensions on corporate profits across the Eurozone and UK.