Bank Earnings Overview

Most of the bulge bracket banks released their earnings this week, as well as a few other prominent Wall Street names. JP Morgan and Citigroup kicked off the week with better-than-expected earnings, followed by Goldman Sachs, Bank of America, and Morgan Stanley. These earnings were a telling sign of how these businesses will operate under the current tariff and inflationary conditions of the economy.

JP Morgan

JP Morgan exceeded Q2 projections in revenue at $45.7 Billion (down 10% YoY) and fell just short of their projected interest income. CEO Jamie Dimon stated that the economy has been and will be facing significant challenges due to tariffs, inflation, and geopolitical uncertainty. Overall given the economic circumstances of Q2, these earnings are still strong.

Citi

Citigroup announced revenues of $21.7 billion (up 8% YoY), and EPS of $1.96, outperforming expectations from many analysts. This comes as Citi continues to invest in its AI infrastructure, aiming to increase productivity and streamline business processes. Overall, this is a very strong earnings report and shows significant signs of growth for the future.

Goldman Sachs

Goldman Sachs Sales and Trading did extremely well in Q2, earning the firm $4.3 billion (up 36% YoY). Overall, the firm exceeded analyst projections, with revenues of $14.58 billion (up 15% YoY), and showed significant growth firmwide. Goldman also represented the uptick in M&A activity, with investment banking fees up 26%. Overall, Goldman thrived in Q2 and shows major signs of continued growth.

Morgan Stanley

Morgan Stanley beat analyst projections with revenues of $16.79 billion (up 12% YoY). This success is in large part credited to their wealth management arm, producing $7 billion in revenues. Overall, this is a very strong earnings report for the bank, and they showed significant signs of growth throughout Q2.

Bank of America

Bank of America fell short of analyst projections, with revenues of $26.5 billion (up  4% YoY). This comes as the bank is experiencing a slump in their investment banking revenues, with their earnings heavily supplemented by the sales and trading division. Overall, Bank of America fell short of analyst projections, but still have strong earnings given economic circumstances.

Summary

Throughout Q2 banks benefitted heavily from the increased trade activity, as people responded to the current economic environment. While sales and trading did supplement much of these earnings, there does seem to be an upward trend in M&A activity for these banks which could be a sign of growth. Overall given the state of the economy, these earnings are far from weak, and show significant resilience through the current tariff, inflation, and geopolitical uncertainty.

Written by Joseph Loughran

*The views expressed in this article are for informational and analytical purposes only and do not constitute financial advice. All opinions reflect current market interpretations and are subject to change based on new developments. Quantovate AI is not a registered investment advisor. Please conduct your own research or consult with a financial professional before making investment decisions.