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Higher Rates Put EQB Stock And 2 Financial Shares In Focus

Simply Wall St · 1d ago

After the latest Federal Reserve meeting kept rates on hold but pointed to a possible September hike, investors are reassessing how higher borrowing costs and choppy markets might affect the financial sector. The S&P 500 and Dow Jones moved lower and Treasury yields climbed, which put banks and insurers back in focus. This article looks at three large Financials screener stocks that appear closely tied to this rate story. You will see how each stock could be helped or hurt by stickier inflation, a more hawkish Fed and higher long term yields, so you can decide whether they fit your watchlist.

Credicorp (BAP)

Overview: Credicorp is a Peru based financial group that offers a wide range of services, including retail and corporate banking, microfinance, insurance, pensions, health services and investment management across several Latin American markets and select offshore centers.

Operations: Credicorp generates most of its revenue from Universal Banking at Banco de Crédito del Perú (PEN 15.1b), with additional contributions from microfinance at Mibanco (PEN 2.0b), insurance and pension funds (PEN 2.3b across Prima AFP and Pacífico Seguros) and investment management and advisory (PEN 1.1b).

Market Cap: US$30.9b

Credicorp provides direct exposure to a large Latin American banking and insurance group that could be influenced by movements in global interest rates through changes in interest margins. Its digital initiatives and microfinance platforms expand access to underbanked customers. Earnings growth, high net profit margins around 33% and a P/E below many peers highlight a potential value angle, while the elevated bad loans ratio and significant dependence on Peru keep credit quality and local policy risk in focus. Recent dividend increases and leadership changes, including a new CFO expected in late 2026, introduce additional factors that investors may wish to understand in more depth before considering how Credicorp might fit within a rate sensitive portfolio.

Credicorp’s mix of high net margins, microfinance reach and a P/E below many peers hints at a story the market may not fully be pricing in yet. Scan the 3 key rewards and 3 important warning signs to see what might be quietly skewing the risk reward balance.

NYSE:BAP P/E Ratio as at Jul 2026
NYSE:BAP P/E Ratio as at Jul 2026

Bendigo and Adelaide Bank (ASX:BEN)

Overview: Bendigo and Adelaide Bank is an Australian regional bank that provides everyday banking, lending, wealth and payments services to households and small to medium sized businesses through brands like Bendigo Bank, Up, Leveraged and Community Enterprise Foundation.

Operations: Bendigo and Adelaide Bank generates A$1.19b of revenue from Consumer banking, A$697.3m from Business and Agribusiness and A$100m from Corporate services, with all A$1.92b of reported revenue earned in Australia.

Market Cap: A$6.53b

Investors watching higher global rates may find Bendigo and Adelaide Bank interesting because it is a regional lender that can benefit from wider net interest margins, yet it is still trading around 1x P/B and slightly below one estimate of fair value. The story is more nuanced than a simple rate winner, though. The bank is currently unprofitable with a reported loss, carries a dividend yield of about 5.6% that is not well covered by earnings and faces rising funding costs as customers shift into higher interest deposits. At the same time, management is investing heavily in digital channels and risk systems, while balance sheet growth and strong customer satisfaction point to a business that could look quite different once earnings repair takes hold.

Bendigo and Adelaide Bank’s earnings setback and 5.6% yield sit beside customer growth and digital investment that many investors may be underestimating. Scan the 2 key rewards and 1 important warning sign to see what might be quietly driving the next chapter.

ASX:BEN P/B Ratio as at Jul 2026
ASX:BEN P/B Ratio as at Jul 2026

EQB (TSX:EQB)

Overview: EQB is a Canadian bank that focuses on digital led personal and commercial banking, offering mortgages, savings products, small business solutions and trust services through Equitable Bank and EQ Bank.

Operations: EQB generates all of its CA$1.06b of revenue from banking activities in Canada.

Market Cap: CA$6.10b

EQB provides exposure to a digital first Canadian bank at a time when higher global yields can affect net interest income, while the market continues to price in meaningful credit and earnings risk. The recent PC Financial acquisition, the new EQ Bank Business Card and a deeper Loblaw partnership expand funding and fee income opportunities. AI driven risk tools and a governance refresh are intended to maintain tighter control on loan quality after a year of weaker net income and a bad loans ratio around 2.3%. With the Federal Reserve signaling tighter policy and long dated yields rising, EQB is viewed as a rate sensitive bank where the balance between growth potential and credit stress remains an active topic for the market.

EQB’s digital growth story and recent PC Financial deal could be masking a much bigger shift in risk and reward. Scan the 3 key rewards and 4 important warning signs to see what the market might be missing next

TSX:EQB Earnings & Revenue History as at Jul 2026
TSX:EQB Earnings & Revenue History as at Jul 2026

The three stocks in this article are just a starting point. The full screener surfaces 37 more banks and insurers that also pair solid fundamentals with detailed narratives around value, balance sheet strength and rate sensitivity, all captured in the Financials (Banks and Insurance Companies) screener. Use Simply Wall St to identify and analyze the exact catalysts, risk flags and storylines that matter to you so you can focus on the highest conviction opportunities in this corner of the financials sector.

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Seeking Fresh Alternatives Before They Fly

Markets move fast, and the next breakout list will not stay under the radar for long. Scan these fresh ideas before the crowd catches on and consider your options promptly.

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.