YWO NEWS | EQUITIES | DEEP DIVE / ANALYSIS
Five of the largest US banks reported second-quarter earnings before Tuesday’s open in an unusually compressed morning, with JPMorgan Chase posting a 41% jump in net income to $21.2 billion and Bank of America reporting revenue of $31.7 billion, up 15% from a year earlier, CNBC’s Hugh Son and Laya Neelakandan reported. The releases — covering JPMorgan (JPM), Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs, and Citigroup were all published before Tuesday’s market open.
JPMorgan’s reported results included one-time gains that affected the year-on-year comparison. . According to CNBC reported, excluding approximately $5.6 billion of gains on Visa and other one-time items, net income growth was approximately 13%. , JPM shares were up less than 1% on the print and then fell roughly 2% in premarket trading.
JPMorgan’s Equities Desk Ran the Quarter
The standout line item at JPMorgan was equities trading. Revenue came in at $6 billion, up 86% year-over-year, beating the StreetAccount consensus by $2.11 billion, Hugh Son at CNBC noted. Fixed income was a slight miss, printing at $6.1 billion against a $6.22 billion estimate, with lower commodities revenue the cited drag.
Investment banking fees added to the story: $3.3 billion, up 30% year-over-year, roughly half a billion dollars above the consensus of $2.82 billion. JPMorgan specifically called out “particularly strong performance” in equity underwriting fees — language that points directly to the SpaceX IPO, which drove surging deal fees across Wall Street in Q2, CNBC reported.
CEO Jamie Dimon leaned into the breadth of the result. “Performance was strong across the Firm, and revenue in each line of business hit a new record,” Dimon said in the earnings statement, as reported by Hugh Son.
Dimon also addressed the macro backdrop. “The U.S. economy has demonstrated notable resiliency this year, with stronger business investment and hiring,” he said, attributing the strength to “AI-driven capital investment, fiscal stimulus and the benefits of more efficient regulation,” per the earnings statement cited by CNBC’s Leslie Picker.
Bank of America’s Investment Banking Fees Ran 50% Hot
Bank of America’s headline numbers beat on both lines — $1.21 EPS versus $1.13 expected, and $31.7 billion in revenue against a $30.72 billion Wall Street estimate, according to CNBC, with analyst expectations compiled by LSEG.
Investment banking was among the strongest-performing business lines. . Fees came in at $2.1 billion, up 50% from the year-ago period, against a StreetAccount consensus of just $1.86 billion, Laya Neelakandan reported for CNBC. Net interest income landed at $16.2 billion, up 9%, driven by global markets activity and higher loan and deposit balances, essentially in line with the StreetAccount consensus of $16.23 billion.
The 50% surge in investment banking fees at BofA — alongside JPMorgan’s 30% jump in the same category — reflects the same SpaceX-driven underwriting windfall, with commercial lending also showing what CNBC described as signs of a turnaround.
Additional Information Expected from Earnings Calls
Strong trading desks and fee windfalls from a single high-profile IPO do not, on their own, resolve the two questions markets were most focused on heading into this morning: credit quality and net interest income trajectory, CNBC noted. BofA’s NII came in close to consensus, but the full picture on consumer credit health and loan loss provisions across all five banks was still emerging from the earnings calls as of Tuesday morning.
JPMorgan shares traded lower in premarket trading despite the reported earnings. . CNBC noted that analysts were also considering the impact of excluding one-time gains when evaluating the results. . The conference call with analysts, scheduled for 8:30 a.m. ET, was the next forum for Dimon and CFO Jeremy Barnum to address NII guidance and credit-quality commentary, CNBC reported.
Wells Fargo beat on both top and bottom lines in Q2 as well, per the same live coverage, though the detailed line items were still being reported as of the published update.
Q2 Bank Earnings Snapshot
| Bank | Revenue | EPS | Key Beat |
|---|---|---|---|
| JPMorgan (JPM) | — | — | Equities trading +86% to $6bn; IB fees $3.3bn vs $2.82bn est. |
| Bank of America (BAC) | $31.7bn vs $30.72bn est. | $1.21 vs $1.13 est. | IB fees $2.1bn (+50% YoY) vs $1.86bn est. |
| Wells Fargo (WFC) | Beat | Beat | Top and bottom line beat confirmed |
Sources: CNBC, StreetAccount, LSEG consensus
Goldman Sachs and Citigroup results were also due Tuesday morning as part of the same reporting sweep. Goldman’s numbers were anticipated to reflect the same SpaceX underwriting tailwind — the IPO drove surging fees for Goldman and Morgan Stanley specifically, CNBC reported.
The five-bank simultaneous release is itself an unusual event. The simultaneous publication of results from several large banks meant investors received multiple earnings announcements before the market opened.
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