US banks report blockbuster earnings

By BEN SHIMKUS, US CONSUMER REPORTER and REUTERS

Published: | Updated:

Some of America's biggest banks just reported blockbuster earnings in their last quarter. They're benefitting from volatile trading markets and increased interest rates.

Some of America's biggest banks just reported blockbuster earnings in their last quarter. They're benefitting from volatile trading markets and increased interest rates.

Some of America's largest financial giants — including JPMorgan, Citigroup, PNC, and Bank of America — all beat second-quarter profit expectations this week.

Some of America's largest financial giants — including JPMorgan, Citigroup, PNC, and Bank of America — all beat second-quarter profit expectations this week.

In earnings calls, each pointed to rising interest income and surging trading revenue as major profit drivers.

In earnings calls, each pointed to rising interest income and surging trading revenue as major profit drivers.

Those interest payments are a bonanza for Wall Street. They're also another financial squeeze for millions of Americans juggling evermore costly credit cards, mortgages, and personal loans.

Those interest payments are a bonanza for Wall Street. They're also another financial squeeze for millions of Americans juggling evermore costly credit cards, mortgages, and personal loans.

Bank of America led the charge with $7.1 billion in profit, driven by a record $14.7 billion in net interest income and a 15 percent jump in trading revenue.

Bank of America led the charge with $7.1 billion in profit, driven by a record $14.7 billion in net interest income and a 15 percent jump in trading revenue.

'Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose,' the bank's top boss, Brian Moynihan, said. 'In addition, we saw good momentum in our markets businesses.'

'Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose,' the bank's top boss, Brian Moynihan, said. 'In addition, we saw good momentum in our markets businesses.'

JPMorgan and Citi also reported earnings growth driven by the same trends: bigger returns from customer loan payments and a strong quarter for their trading desks. Wall Street's trading floors at these banks have maintained a hot streak, as volatile markets triggered by tariffs, geopolitical conflicts, and economic uncertainty caused a surge in institutional trading.

JPMorgan and Citi also reported earnings growth driven by the same trends: bigger returns from customer loan payments and a strong quarter for their trading desks. Wall Street's trading floors at these banks have maintained a hot streak, as volatile markets triggered by tariffs, geopolitical conflicts, and economic uncertainty caused a surge in institutional trading.

The banks — which collect fees for helping clients buy and sell stocks, bonds, currencies, and commodities — are seeing better-than-expected returns from their capital markets businesses.

The banks — which collect fees for helping clients buy and sell stocks, bonds, currencies, and commodities — are seeing better-than-expected returns from their capital markets businesses.

Goldman Sachs' profit jumped 22 percent in the second quarter, largely because of the market turbulence.

Goldman Sachs' profit jumped 22 percent in the second quarter, largely because of the market turbulence.

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