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6h ago

U.S. Banks Exceed Q2 Forecasts as Trading and Dealmaking Rebound

Banks have raised their net interest income guidance after outpacing earnings estimates with volatility-fueled trading gains.

Shoppers browse a Walmart Supercenter a day after U.S. President Donald Trump announced new tariffs, in Secaucus, New Jersey, U.S. April 3, 2025. REUTERS/Siddharth Cavale/File Photo
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The office of BNY Mellon investment banking company is pictured in New York City, U.S., July 10, 2024.REUTERS/David 'Dee' Delgado/File Photo
A man walks from a branch of Wells Fargo bank in the University District of Seattle, Washington, U.S. December 6, 2024. REUTERS/Chris Helgren/File Photo

Overview

  • JPMorgan reported $15 billion in second-quarter net income, or $5.24 per share, beating the $4.48 consensus and lifting its 2025 net interest income outlook to $92 billion.
  • Citigroup posted $4 billion in Q2 profit, or $1.96 per share, up 25% year-over-year and above the $1.60 street estimate.
  • Volatility from tariff-driven market swings boosted trading revenue, with JPMorgan’s fixed-income and equities desks each registering mid-teens percentage gains.
  • Investment banking fees recovered late in the quarter, rising 7% at JPMorgan to $2.5 billion and jumping into double-digit growth at Citigroup.
  • All major banks passed the Federal Reserve’s less-stringent stress tests, freeing capital for higher dividends and share buybacks as executives warn of tariff, geopolitical and fiscal pressures.