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US banks issue buybacks as stress test loses its bite
JPMorgan unveiled a US$50 billion buyback program and raised its dividend 10%, moving within minutes of the Federal Reserve clearing all 32 major United States banks in the annual stress test. Goldman Sachs, Wells Fargo and Morgan Stanley lifted dividends by 11%, 11% and 15% respectively, with Morgan Stanley also reauthorising a $20 billion repurchase program. The industry's CET1 ratio fell 1.6 percentage points under the severe scenario, from 12.8% to 11.2%, still well above the 4.5% floor after $708 billion in modelled losses. Fed's test assumed 10% unemployment, commercial real estate down 39% and home prices off 30% - yet none of the 32 banks came close to breaching minimum capital requirements. "The Board's intended dividend increase is supported by our consistent investment in our business and strong financial performance," JPMorgan CEO Jamie Dimon said.Going through the motionsKBW analysts called this year's exercise "going through the motions" in a 21 June note, pointing investors toward the Basel III Endgame re-proposal expected later in 2026 instead. The Fed froze stress capital requirements in February until 2027 pending a methodology overhaul, meaning Wednesday's results carry no bearing on what any of t
Banks
Capital One misses estimates; Discover charges continue
Capital One missed earnings and revenue estimates last quarter as it continued to absorb expenses from its purchase of credit card brand Discover. Revenue was down 2% quarter-over-quarter to US$15.23 billion, missing Zacks consensus estimates by 0.9%. Adjusted earnings per share dropped to $4.42, up from $4.06 one year ago but under estimates of $4.61. “Our results in the first quarter reflect solid top line growth and strong credit performance," said chair and CEO Richard Fairbank. "The Discover integration continues to go well and we continue to build momentum from this game-changing acquisition.” The company reported a hit of $1.08 from Discover amortisation and integration expenses. Capital One agreed to purchase Discover for $35.3 billion in 2024 in a bid to expand its credit card offerings, with the transaction completing last May. Loans held for investment dropped 1% to $447.8 billion by the end of last quarter. This was largely due to a 3% decline in credit card loans, while consumer banking and commercial banking loans rose 2% and 1% respectively. Average loans held for investment rose less than 1% to $446.2 billion. Total deposits at the quarter’s end climbed 3% to $489.1 billion, while average deposits
Banks
NAB projects A$706m hit from Iran war turmoil
National Australia Bank has projected A$706 million in credit impairment charges for the first half of fiscal 2026 as the Iran war pressures financial markets, with shares falling by 3.5%. This is a $300 million increase from the bank's prior forecast. Its impairment charge in the previous half year was $485 million. “In light of the volatility in markets following the conflict in the Middle East, National Australia Bank (NAB) has reviewed its credit provisioning and capital settings to better reflect the risks now inherent in our business,” the bank wrote in an ASX announcement. It raised its forward-looking adjustments by $201 million due to potential stresses on sectors that could face greater hits from fuel supply issues or rising costs, such as agriculture, construction, and transport. The bank said it had lowered forward-looking adjustments for sectors where risks had not materialised or been included in underlying provisioning by $53 million, meanwhile. The charges also include a $152 million increase in the bank’s economic adjustment, which it credited to updates to its economic forecast and a larger weighting for Australia’s downside economic scenario. NAB’s Common Equity Tier 1 ratio has dropped by 20 b
Banks
Bank of America beats estimates; buoyed by trading
Bank of America surpassed earnings and revenue estimates last quarter, buoyed by surging equities trading activity. Earnings per share increased 25% year-over-year to US$1.11, above LSEG consensus estimates of $1.01. Revenue rose 7% to $30.43 billion, beating estimates of $29.93 billion. “Earnings per share rose 25% year-over-year, starting 2026 with strong momentum. Net income of $8.6 billion reflected the team’s disciplined execution,” said chair and CEO Brian Moynihan. “We remain watchful of evolving risks. However, we saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy.” Net interest income climbed 9% to $15.75 billion. The company credited this to higher deposit and loan balances and strong activity in its Global Markets segment. Global Markets sales and trading revenue climbed 13% to $6.4 billion. The increase was driven by a 30% jump in revenue from equities trading. Its Consumer Banking division saw revenue rise 5% to $11.0 billion, with average loans and leases growing by 2% to $322 billion. Global Wealth and Investment Management revenue was up 12% to $6.7 billion due to a 15% increase in asset management fees. Bank of Am
Banks
Wells Fargo net interest income misses estimates
Wells Fargo missed estimates last quarter as net interest income fell short of expectations, with shares falling by almost 6%. Earnings per share were US$1.56 per share, rising from $1.39 year-over-year and under Zacks consensus estimates of $1.58. Revenue was $21.45 billion, up from $20.15 billion but below estimates by 1.3%. “We saw continued positive impacts from the investments we have been making with diluted earnings per share increasing 15%, revenue increasing 6%, loans increasing 11%, and deposits increasing 7% compared to a year ago,” said chair and CEO Charlie Scharf. “While markets have been volatile, we still see continued resiliency in the underlying economy and the financial health of the consumers and businesses we serve remains strong, though the impact of higher oil prices will likely take some time to materialize. We will continue to monitor trends and respond accordingly, and we are well positioned to support our customers across a range of economic scenarios.” Net interest income was up 5% to $12.10 billion, below LSEG-compiled estimates of $12.3 billion. Wells Fargo credited the increase to higher deposit balances and lower deposit costs, offset by lower interest rates on floating rate assets. N

Banks
JPMorgan wary despite exceeding expectations
JP Morgan Chase & Co exceeded market expectations with profit in the first quarter of the 2026 financial year (Q1 FY26) due to stronger-than-expected fixed income and investment banking revenue but warned of the risks ahead. The world’s largest bank said net income rose 13% to US$16.49 billion (A$23.14 billion) in the three months to 31 March 2026 compared with the previous corresponding period. Diluted earnings per share (EPS) increased 17% to $5.94 on reported net revenue which lifted 10% to $50.5 billion.Source: JPMorgan ChaseChairman and Chief Executive Officer Jamie Dimon said the performance was strong across its businesses, with revenue growing 19% in the Commercial & Investment Bank (CIB) division, 7% in Consumer and Community Banking and 11% in Asset and Wealth Management. He said Markets revenue rose 20%, investment bank fees leapt 28% due to stronger advisory and equity capital markets (ECM) activity, and Payments continued to deliver very strong results with double-digit growth in deposits and fees. Revenue from fixed income markets climbed 21% to $7.1 billion while equity markets surged 17% to $4.5 billion. The United States economy remained resilient in the quarter, supported by tailwinds including inc
Banks
Citigroup beats estimates with growth across segments
Citigroup beat earnings and revenue estimates last quarter, reporting its best revenue in a decade after strong increases across all segments. Revenue was up 14% year-over-year to US$24.63 billion, surpassing LSEG consensus estimates of $23.55 billion. Earnings per share rose 56% to $3.06, above estimates of $2.65. “We’re off to an exceptionally strong start in 2026, with revenue up 14% and net income growing 42%,” said Citi chair and CEO Jane Fraser. “We remain very much on track to deliver the 10-11% RoTCE target this year. I’m excited for next month’s Investor Day where we’ll discuss our path forward and how we will realize the significant upside Citi offers.” The bank reported $2.78 trillion in total assets at the end of the quarter, up 8%. Loans rose 8% to $762 billion, and deposits increased 10% to $1.45 billion. Services revenue surged 17% due to growth in its Treasury & Trade Solutions and Securities Services sub-segments. Markets revenue rose 19%, with its Fixed Income division’s revenue growing 13% to $5.17 billion. Banking revenue was up 15% and Wealth revenue climbed 11%. Its income from continuing operations also grew by 45% to $5.94 billion. Operating expenses were up 7% to $14.31 billion, which
Banks
Westpac flags A$75m profit hit from RAMS sale
Westpac Banking Corporation has announced that the sale of its RAMS mortgage portfolio will reduce half-year net profit by A$75 million (US$53.2 million). The Big Four bank also said it faced a more challenging environment due to the impact of the United States war with Iran on crude oil prices. Westpac (ASX: WBC) said its first half results for the 2026 financial year (H1 FY26) included a notable item related to transaction costs for the sale of its $21.4 billion RAMS portfolio to a consortium including Pepper Money (ASX: PPM), KKR and Pimco. “This reduced reported net profit after tax by $75 million,” the bank said in an ASX announcement. It also said geopolitical uncertainty and the associated increase in market volatility had reduced the net interest margin in its Treasury and Markets division to seven basis points in Q2 from 15 basis points in Q1 FY26. Foreign currency translation from the 6% depreciation in the New Zealand dollar average exchange rate had affected revenue and costs. Westpac said the revised economic outlook had been reflected in a base case provision scenario, and a new portfolio overlay had been added for energy-intensive sectors, resulting in an increase in credit provisions in H1. As
Banks
Goldman Sachs Q1 beats estimates but stock weakens
Goldman Sachs Group has reported a higher-than-expected 19% increase in net earnings for the first quarter of the 2026 financial year (Q1 FY26), but its stock price fell due to weakness in its fixed income, currencies and commodities (FICC) division. The global investment bank said net earnings rose to $5.63 billion (A$7.93 billion) in the three months to 31 March 2026 from $4.74 billion in the previous corresponding period (pcp). Diluted earnings per share (EPS) jumped 24% to 17.55 cents on revenue which increased 14% to $17.23 billion. “Goldman Sachs delivered very strong performance for our shareholders this quarter, even as market conditions became more volatile,” Chairman and Chief Executive Officer David Solomon said in a press release. “The geopolitical landscape remains very complex – so disciplined risk management must remain core to how we operate.”Source: Goldman SachsRevenue and EPS exceeded analysts' average estimates of $16.97 billion and 16.49 cents, respectively, according to data compiled by LSEG. Net revenue in the Global Banking & Markets division rose 19% to $12.74 billion in Q1, including a 48% leap in investment banking fees and higher net revenue from equity and debt underwriting. However,