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JPMorgan Chase posts record US banking quarterly profit
The world’s largest bank, JP Morgan Chase, has announced the highest quarterly profit ever recorded by a United States bank, driven by booming investment banking activity, record trading revenue and resilient consumer demand. The bank reported net income of US$21.2 billion (A$30.4 billion), or US$7.70 per share, for the three months ended June 30, comfortably exceeding analysts' expectations and 41% and 47% ahead of the previous corresponding period net income and earnings per share, respectively. This was on revenue which climbed 28% to US$57.35 billion, also well ahead of market forecasts. The results marked the strongest quarterly profit ever reported by a U.S. bank, driven by a sharp rebound in mergers and acquisitions, equity capital markets activity and elevated trading volumes amid volatile financial markets. Investment banking fees surged 30% to $3.3 billion, their highest level since 2021, as a resurgence in initial public offerings and corporate dealmaking boosted advisory income. JPMorgan played lead roles in several landmark transactions during the quarter, including SpaceX's public listing and other multi-billion-dollar capital raisings. Equities trading revenue jumped 86% to a record $6.03 billion w
Banks
Goldman's 46% earnings beat still leaves one ratio falling
Goldman Sachs booked US$20.34 billion of net revenue in the second quarter, its best quarter since the firm was founded in 1869, and beat Wall Street's earnings estimate by 46%. Diluted earnings per share came in at $20.98, against a consensus of roughly $14.40, and net earnings nearly doubled to $6.63 billion from $3.72 billion a year earlier. Every major business line grew, which is rarer than it sounds for a bank this size, and management used the result to lift the quarterly dividend by 11% and confirm $4.0 billion of buybacks for the quarter. The market's read was straightforward, with shares jumping more than 7% in premarket trade, pushing the stock within about 1% of its 52-week high. The more interesting story sits a few pages into the results presentation, where Goldman disclosed that its supplementary leverage ratio slipped to 4.3%, the lowest among its major U.S. peers. That is not a headline metric, and it will not move the share price on results day, but it is the constraint that decides how much bigger this trading and financing machine can actually get from here. Global Banking & Markets, the division that houses trading and investment banking, produced record net revenues of $15.52 billion, up 53%
Banks
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