Big Banks Post $55 Billion Profit on Trading, AI, Deals

The six largest U.S. banks — JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo — reported $55 billion in combined profit for the April–June quarter. Excluding JPMorgan’s one-time Visa and equity gains, the group earned about $50.4 billion.

All six institutions beat analysts’ estimates for earnings and revenue. Market moves related to the conflict in the Middle East, shipping disruptions near the Strait of Hormuz and a rise in oil prices increased trading volumes across equities, currencies, commodities and fixed income.

Trading revenue was the largest contributor. Goldman Sachs posted $7.42 billion in equities revenue, up 72% year over year, and $4.59 billion in fixed-income revenue, up 32%. JPMorgan produced $6 billion in equities revenue, up 86%, and $6.1 billion in fixed income, for $12.1 billion in markets revenue. Morgan Stanley reported $6.3 billion in equity trading and $2.5 billion in fixed income. Bank of America recorded a record $3.6 billion in equities trading and $3.5 billion in FICC revenue. Citigroup reported $2.3 billion in equities and $4.7 billion in fixed income. Wells Fargo’s markets revenue in its Corporate and Investment Banking division rose to $2.21 billion, with equities trading up 64%.

Investment banking fees rose across the group. Goldman generated $3.4 billion, up 55% year over year. JPMorgan earned $3.3 billion, a 30% increase, and Morgan Stanley’s fees rose 58% to $2.44 billion. Bank of America, Citigroup and Wells Fargo also reported higher advisory and underwriting income. Dealogic data showed global investment banking revenue climbed 24% in the first half of 2026 to $61.4 billion.

SpaceX’s $86 billion initial public offering in June was the largest U.S. IPO on record and generated roughly $500 million in fees shared among participating firms. Goldman was lead-left underwriter, with JPMorgan, Bank of America, Citigroup and Wells Fargo participating as co-underwriters and advisers.

Artificial intelligence underpinned part of the capital markets activity. Banks provided financing for data centers, underwrote debt and equity for AI firms and advised on acquisitions and large financing packages for AI infrastructure. Denis Coleman, Goldman Sachs’ chief financial officer, described an “AI capex super cycle” with strong demand for financing across regions and industries. Goldman CEO David Solomon said the wave created “a ripple effect” through the U.S. economy. Wells Fargo analyst Mike Mayo described the AI investment cycle as having “reached a tipping point” in the quarter and raised price targets on Goldman and JPMorgan.

Consumer lending continued to contribute to results. Bank of America added one million credit-card accounts and customers spent $266 billion on debit and credit cards, a 9% increase year over year. Wells Fargo reported a 33% rise in auto loan revenue, driven by higher balances and stronger originations. Banks reported relatively low delinquency rates and noted that expectations for interest rates to remain elevated supported lending profitability.

Banks are applying AI internally as well. Bank of America said it has more than 300 approved artificial intelligence and machine learning use cases, including 114 live generative AI applications and 34 deployed at scale to improve workflow efficiency and frontline productivity.

Executives and analysts attributed the quarter’s results to higher market volatility, increased deal activity and AI-related financing needs.