Big 4 US Banks Report Over $49B In Q2 Profits As Wall Street Shrugs Off Impact Of Iran War

Four of the largest banks in the US reported a collective $49 billion in profits in the second quarter of 2026, beating analyst expectations across the board, driven by a surge in investment banking fees, record equity trading, and resilient consumers who have so far absorbed higher energy costs and stubborn inflation without cracking.JPMorgan JPMorgan reported net income of $21.2 billion for the second quarter, up 41% from the same period a year earlier, though that figure drops to a more modest 13% growth when stripping out $5.6 billion in gains on its Visa stake and other one-time items, according to its earnings report released on Tuesday.Revenue came in at $58 billion against analyst expectations of $50.2 billion. Earnings per share, excluding significant items, came in at $6.14 against an expected $5.85.Every major business at JPMorgan posted record revenue in the quarter, JPMorgan Chase CEO Jamie Dimon said. The standout was equities trading, where revenue surged 86% to $6 billion, beating estimates by $2.1 billion, driven in part by the SpaceX IPO and what CFO Jeremy Barnum described as a "very, very, very active environment" downstream of the global AI theme. Investment banking fees rose 30% year-on-year to $3.3 billion, beating consensus by roughly $500 million, with particular strength in equity underwriting.The one area of relative weakness was fixed income, which rose 6% to $6.1 billion, just below the $6.2 billion estimate. Barnum pointed to the Hormuz situation as a complicating factor for commodities trading specifically. "The US economy has demonstrated notable resiliency this year, with stronger business investment and hiring," Dimon said, while also warning of risks "shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices." On the impact of higher oil prices, Dimon noted that energy costs are a fraction of what they were in the 1970s and 1980s, but added: "It does not mean there's not a tipping point. It just may be further out."JPMorgan's expense outlook continued to climb, with the firm guiding to $107.5 billion for the full year, up from $106 billion in May, which itself was up from $105 billion in April.Barnum described the consumer as "maybe slightly better this quarter," supported by tax refunds and a resilient labor market. Goldman Sachs Goldman Sachs reported earnings per share of $21 against analyst expectations of $14.5. Revenue came in at $20.3 billion versus the $16.1 billion expected, beating estimates by more than $4 billion and delivering net income of $6.63 billion for the quarter.Trading was the standout, with equities revenue surging 72% to $7.4 billion, roughly $2.3 billion above estimates. Fixed income jumped 32% to $4.6 billion, about $880 million above what analysts had projected, a strong recovery after a disappointing first quarter. Investment banking fees rose 55% from a year earlier to $3.4 billion, beating estimates by around $610 million, driven by strength in equity underwriting from IPOs and secondary offerings, debt issuance, and merger advisory fees. Goldman said its deal backlog increased relative to the first quarter, marking a positive signal for the second half.The one area of weakness was Goldman's platform solutions division, where revenue fell 64% to $221 million, slightly below the $246.9 million estimate, partly reflecting markdowns tied to the Apple Card loan portfolio the firm is selling to JPMorgan after years of difficulties. Bank of AmericaBank of America reported net income of $9.1 billion for the second quarter, with earnings per share of $1.21 against the $1.1 expected and revenue of $31.7 billion against the $30.7 billion estimate, a 15% increase in revenue net of interest expense. CEO Brian Moynihan called it one of the strongest quarters to date for the bank, noting that "every business segment reported double-digit net income growth and strong returns on equity."Net interest income came in at $16.2 billion, up 9% and roughly in line with expectations, driven by global markets activity and higher loan and deposit balances. Investment banking fees rose 50% to $2.1 billion, beating the $1.86 billion estimate. Earnings per share rose more than 30% from a year ago and client balances reached a record $4.9 trillion, up 12%.Provision for credit losses came in at $1.4 billion, down from $1.6 billion a year earlier and roughly in line with the $1.5 billion estimate, with asset quality described as healthy and in line with expectations. On the broader environment, Moynihan said the US economy has proved more durable than expected, "supported by the strong consumer, ongoing AI-driven investments across the board and easing energy costs, though inflation and tighter monetary policy remain key risks." Wells Fargo Wells Fargo reported earnings per share of $2 against the $1.7 expected and revenue of $22.6 billion against the $21.8 billion estimate, with net income of more than $6.4 billion for the quarter, driven by consumers and businesses borrowing more. CEO Charlie Scharf noted concerns around affordability and inflation but said those were being offset by strong employment and wage growth. "We are clearly benefiting from the broad-based economic strength we see in the US," he said.Scharf also highlighted the lifting of the asset cap that had constrained the bank for years following its fake accounts scandal under previous leadership, describing the overall environment as strong and leading to growth across operations. Chief Financial Officer Mike Santomassimo said consumer trends have been very resilient despite oil price volatility, but added a caveat that reflected the broader tone of caution running through the bank results. "If inflation ends up being much higher than people expect, or rates end up having to go much higher than people expect, driven by whatever reason, including the impacts of oil, then I think that will have some kind of impact on consumers and the overall economy," Santomassimo said. Citigroup Citigroup reported earnings per share of $3.15 against the $2.7 billion expected and revenue of $24.8 billion against the $23.7 billion estimate. Net income came in at $5.8 billion, up from $4 billion in the year-ago period, with growth driven by higher revenue and a lower provision for credit losses of $2.5 billion, below the $2.7 billion estimate. Citigroup reported its best quarterly revenue in a decade, with double-digit revenue growth across four of its five businesses.Equities markets revenue surged 45% to $2.3 billion, well above the $1.8 billion estimate. Fixed income markets revenue came in at $4.7 billion, up 7% and just above estimates. Return on tangible common equity was 13%, down slightly from 13.1% last quarter. CEO Jane Fraser said the bank has launched a $30 billion buyback plan and announced a 12% dividend increase. "The combination of our investments, disciplined execution and focus on clients is improving our returns and creating more durable results for our investors," she said.