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Big U.S. Banks Post Record Q2 Profits on Trading and Deal Fees

A burst of large IPOs plus heavy AI dealmaking drove fee and trading revenue, raising fresh questions about how long the run can continue.

Overview

  • The five largest U.S. banks reported roughly $49 billion in combined second-quarter profits on Tuesday, with trading and investment-banking fees the main drivers.
  • JPMorgan posted a headline Q2 net income of $21.2 billion that included a $4.6 billion one-time gain from its Visa stake and an adjusted core profit of $16.9 billion.
  • JPMorgan’s equity trading revenue surged about 86% and its investment-banking fees rose roughly 30%, matching strong quarters at Goldman Sachs, Bank of America, Citigroup, and Wells Fargo.
  • CEO Jamie Dimon warned the market may be “close to as good as it gets,” citing stretched asset prices, geopolitical tensions and sticky inflation as risks below the surface.
  • JPMorgan disclosed large institutional blockchain activity—Kinexys has processed multitrillion-dollar volume and JPM Coin launched on Base—while most big banks did not report crypto as a material earnings driver, and observers say Federal Reserve policy and upcoming AI IPOs are key items to watch next.