US Banks Post Record Second-Quarter Profits as Dealmaking Surges

The largest US banks delivered exceptionally strong second-quarter results, released simultaneously on July 14, powered by a surge in dealmaking and trading activity. JPMorgan Chase reported net income of about $21.2 billion, described as the highest quarterly profit ever recorded by a US bank, with revenue and earnings well ahead of expectations. Goldman Sachs posted one of its best quarters on record, with net revenues of roughly $20.34 billion and earnings that nearly doubled from a year earlier, lifted in part by fees tied to a landmark technology-sector IPO and other high-profile transactions. Bank of America, Wells Fargo, Citigroup and Morgan Stanley also beat estimates, though investors punished firms showing weaker cost control, with Citigroup and Wells Fargo shares slipping despite solid headline numbers. Executives painted a mixed macro picture: they described the US consumer as remarkably resilient while cautioning about persistent inflation, elevated asset valuations and geopolitical risk. The results arrived alongside the June inflation report and Fed Chair Kevin Warsh's first congressional testimony, underscoring how central bank policy and trading conditions continue to shape the sector's outlook.