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Five of the biggest U.S. banks reported record profits on last week, boosted by their trading desks and a remarkably resilient American consumer amid persistent global economic uncertainty.
It marks the second straight quarter of strong results from the banks, which have benefited from market volatility since the Iran war began in late February.
Both consumer-facing and market-focused banks reported revenue and profit growth that beat even the most optimistic Wall Street expectations in second-quarter earnings reports July 14.
The KBW Nasdaq Bank Index, which tracks the performance of two dozen banks rose 0.7 percent in afternoon trading.
Here’s a look at how and why banks have continued to thrive despite a clouded economic future.
JPMorgan Chase logged $16.9 billion in second-quarter profit as its equities trading division again took advantage of market volatility triggered by the war in Iran.
The nation’s largest bank by asset size, JPMorgan said that revenue in every line of its business hit record levels in the quarter, including its markets division, where revenue grew 35 percent over the same period last year. Revenue in its equity markets division skyrocketed 86 percent.
JPMorgan earned $6.14 per share in the period, beating analyst estimates of $5.59 per share. Managed revenue came in at $58 billion, also topping the estimates of analysts surveyed by FactSet.
JPMorgan shares rose 1.8 percent by midday.
Bank executives highlighted a surprisingly strong U.S. consumer even as inflation remains elevated, in part due to the higher oil prices brought about by the war in Iran.
Bank of America said that consumer spending expanded, outperforming expectations. Consumer investment assets grew 18 percent year-over-year and average deposits and spending all increased from the first quarter, the bank said.
JPMorgan reported revenue of $20.3 billion from its consumer banking division in the period, a year-over-year increase of 8 percent.
Wells Fargo also reported improved consumer activity, reflecting a broadly healthy U.S. economy.
“Consumer spending is higher, charge-offs and delinquencies are lower, and savings and investments are growing across consumer segments,” Wells CEO Charlie Scharf said.
The unresolved conflict in the Middle East, however, remains a potential economic hurdle for consumers and businesses alike.
Oil prices fell back near prewar levels earlier this month, but they’re back up more than 10 percent this week after the U.S. renewed attacks on Iran and President Donald Trump announced a new blockade in the Strait of Hormuz, a key shipping route for about one-fifth of the world’s oil. At $3.86 per gallon, gas prices remain well above prewar levels but below their peak of around $4.50 in May.
Dimon said on a conference call that JPMorgan remains “appropriately cautious” in light of the current global economic risks.
“We cannot predict how these forces will ultimately play out,” Dimon said. “They may remain manageable, but they could also cause meaningful disruptions when they shift or collide.”
Dimon said that revenue from the New York bank’s investment banking division rose 30 percent, accelerating to the highest level since 2021 as the thirst for initial public offerings and mergers and acquisitions remained strong.
All the major banks played a role in SpaceX’s record-setting IPO in June, with Goldman Sachs and Morgan Stanley acting as lead underwriters. The offering brought in $75 billion, more than all U.S. IPOs combined in 2024 and 2025, according to Renaissance Capital.
Renaissance expects the IPO market to extend its hot streak into the second half of this year, also driven by larger deals such as Korean memory chip giant SK Hynix’s “mega-listing” on Friday that raised $26.5 billion.
Global mergers and acquisition activity also accelerated in the second quarter of 2026, with announcements up 64 percent year-over-year and closings up 33 percent, according to Morgan Stanley.
