With the 10-year U.S. Treasury yield near 4.81% and bond markets on edge, investors are being forced to rethink how they balance risk, income and growth. Higher long-term yields can pressure many stocks, yet they can also improve earnings power or reinvestment returns for others. This article unpacks that story and highlights 3 Global Financials stocks from our screener that appear well placed for this backdrop.
The three stocks that follow are just a starting sample, as the full screen surfaced 57 more large banks and insurers with similar fundamentals and rate exposure stories that are not covered here. To identify your own highest conviction ideas quickly, head straight into the Global Financials – Banks and Insurance Benefiting from Higher Long-Term Yields screener.
Banco Santander is a global retail and commercial bank that takes deposits from individuals and businesses and turns them into loans, mortgages, consumer finance and corporate banking services. This ties directly into the screener focus on large, well capitalized banks that can potentially benefit from higher long term yields through net interest income. Its largest reported revenue contributor is the Segment Adjustment line at about €22.7b, alongside Openbank at around €6.6b, Corporate & Investment Banking at €8.4b, Payment Solutions at €4.1b and Wealth Management & Insurance at €4.4b, reflecting a broad mix of interest and fee income. The company has a market cap of roughly €182.3b, placing it among the bigger global banks in this theme.
Investors looking at higher long term yields may find Banco Santander interesting because its large deposit base and global loan book can translate changing rates into net interest income, while its mix of digital consumer banking, payments and wealth management can add fee resilience. Earnings and revenue growth forecasts are described as solid, yet the stock still carries questions around bad loan levels, an uneven dividend record and recent insider selling, which matter if conditions stay tight for longer. The Webster acquisition in the U.S. and the BankChain Alliance work add extra moving parts that could either strengthen earnings quality or magnify execution risk. This makes deeper analysis of Santander’s 3 key rewards and 4 important warning signs
Banco Santander’s global deposit engine and fee driven businesses could be masking where the real risk reward balance sits. Get the full picture in the 3 key rewards and 4 important warning signs
BME:SAN Earnings & Revenue History as at Sep 2026 Türkiye Is Bankasi (IBSE:ISCTR)
Türkiye Is Bankasi is a major Turkish universal bank that fits the higher yield screener theme through its large deposit and lending franchise, which can convert higher nominal rates into wider interest spreads. It serves individuals and businesses across retail, private and corporate banking, with Corporate and Commercial Banking contributing about TRY209.1b in revenue, Treasury Transactions and Investment Activities about TRY173.9b, and Insurance and Reinsurance Activities about TRY106.1b, while Retail and Private Banking adds roughly TRY3.6b. The bank has a market cap of around TRY367.4b, putting it firmly in the large cap bracket within this screen of well capitalized financials.
Türkiye Is Bankasi gives investors exposure to a large, rate sensitive Turkish bank that is reporting stronger net interest income in a higher yield environment, yet the stock is still priced on a low P/E and carries an analyst price target comfortably above the current share price. The appeal is the mix of fee rich digital banking, ESG linked funding and a broad lending book that can all benefit if margins stay healthy, alongside high reported earnings quality. The catch is a bad loan ratio above the 2% comfort line, an uneven dividend record and governance questions around board depth, which could all matter if Turkish rates or credit conditions move in an adverse direction.
Türkiye Is Bankasi’s low P/E and fee rich model hint at an overlooked story. Get the 5 key rewards and 2 important warning signs while that bad loan ratio and governance question mark still sit in the background.
IBSE:ISCTR P/E Ratio as at Sep 2026 HSBC Holdings (LSE:HSBA)
HSBC Holdings is a global bank focused on interest earning assets across Hong Kong, the UK and a wide range of international markets. This fits the screener’s focus on large, well capitalized financials that can potentially benefit from higher long term yields through wider lending margins. Its biggest business contributor is Corporate & Institutional Banking at about US$27.5b of revenue, followed by Hong Kong on US$15.2b, the UK on US$12.6b and International Wealth & Premier Banking on US$14.4b, while the Corporate Centre offsets around US$2.0b. The company has a market cap of roughly £262.8b, making it one of the largest banks in this theme.
HSBC Holdings gives you exposure to one of the largest global banks at a time when higher long term bond yields are lifting interest income across its diversified loan book, while management leans harder into Asian wealth, fee income and cost savings from technology. The appeal is a mix of scale, improved profitability and a sizeable dividend story that screens as attractively valued on some cash flow measures. The trade off is a 2.1% bad loan ratio with comparatively low reserve coverage, ongoing exposure to Hong Kong commercial real estate and an uneven dividend history that may matter if credit losses or funding costs rise again. Understanding how those positives and pressure points balance out is where the real opportunity lies for patient investors.
HSBC Holdings looks like a giant whose scale, fee income and dividend story could be masking where the real upside sits. Get the 3 key rewards and 3 important warning signs and see how its bad loan and Hong Kong exposure really stack up.
LSE:HSBA P/E Ratio as at Sep 2026 Seeking Fresh Alternatives With Real Potential
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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