Big US Banks Kick Off Earnings Season With Broad Second-Quarter Beats

The largest US banks opened second-quarter earnings season with a run of results that comfortably beat analyst expectations, lifted by robust trading and a rebound in investment banking activity. JPMorgan Chase reported earnings of $6.14 per share, excluding one-off items, on revenue of about $58 billion, ahead of the roughly $5.85 per share and $50 billion analysts had projected. Goldman Sachs stood out with earnings of $20.98 per share, far above the $14.48 consensus, on revenue of about $20.3 billion, sending its shares higher. Citigroup posted $3.15 per share against a $2.74 estimate, with revenue of $24.77 billion, while Bank of America earned $1.21 per share, topping the $1.13 forecast, on revenue of $31.7 billion. The results suggested that market volatility tied to the Middle East conflict and shifting interest rate expectations had, on balance, benefited the banks' trading desks, while dealmaking and capital markets activity picked up. Investors will watch commentary on net interest income, loan growth and credit quality for signs of how the broader economy is holding up in the second half.