European lenders reported their strongest collective quarter in more than ten years, buoyed by net interest margins that have proved unexpectedly resilient. Earnings at the region's six largest banks rose an aggregate twenty-two percent year over year.

The results stand in contrast to a more muted picture in the United States, where deposit competition has begun to eat into the windfall that higher rates initially produced. European institutions, with their larger retail bases and stickier funding, have so far held the line.