Breaking News | Big U.S. Banks Report $43 Billion in Q2 Profit

Four of the largest U.S. banks reported a collective $43 billion in Q2 profits, exceeding analyst expectations. JPMorgan Chase posted $21.1 billion in net income (41% year-over-year increase), with earnings per share of $7.70 beating the FactSet consensus of $5.59 by the widest margin since Q1 2021. Total revenue rose 27.7% to $57.35 billion, driven by an 86% surge in equity-markets revenue to $6 billion and 45% growth in investment-banking revenue to $3.9 billion. Return on tangible common equity improved to 29% from 21% a year ago. Bank of America reported $9.1 billion in net income (up from $7.2 billion), Wells Fargo delivered $6.4 billion (up from $5.4 billion), and Citigroup posted revenue of $24.77 billion ahead of the $23.74 billion estimate. Mortgage origination volumes increased across the sector - JPMorgan originated $17.2 billion (up 26% quarter-over-quarter), Wells Fargo produced $9 billion (up 43%), and Bank of America delivered $8.2 billion (up 28.4%). However, JPMorgan's gain-on-sale margins declined 44 basis points to 85 bps, driving a 17% drop in production revenue. CEO Jamie Dimon cited AI-driven capital investment, fiscal stimulus, and efficient regulation as supporting economic resilience, but warned of risks including geopolitical tensions, sticky inflation, large fiscal deficits, and elevated asset prices shifting "like tectonic plates."

• JPMorgan raised full-year net interest income guidance to $105.5 billion from $103 billion and adjusted expense outlook to $107.5 billion from $105 billion

• The bank lowered its 2026 net charge-off rate outlook to 3.2% from 3.4%, signaling improved consumer credit quality

• Wells Fargo's third-party servicing portfolio declined 21% year-over-year to $361.4 billion as it continues strategic retreat from the business

• Management commentary on whether equity markets and investment banking momentum can sustain through second half 2026