European banks set for profit boost from lending, trading windfall

After a surge in revenue at U.S. banks, European lenders are expected to follow suit this week when they report second-quarter earnings, powered by gains from higher interest rates and in some cases from trading and investment banking.

Headline year-on-year gains, however, are forecast to be smaller and investors will watch closely for any signs the Iran war is taking a toll by clouding the outlook for Europe.