Global Market: European lenders brace for solid Q2 results despite geopolitical uncertainty

Analysts expect European banks to report healthy second-quarter results, with Goldman Sachs forecasting an 11 percent year-on-year increase in pretax profit supported by stronger loan volumes, higher lending margins, rising non-interest income and cost discipline. The EURO STOXX Banks Index has doubled over the past two years to its highest level since the 2008 financial crisis, though caution remains over potential increases in bad loan provisions and sluggish European economic growth amid geopolitical tensions linked to the Iran conflict.