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Big banks topped Q2 estimates on strong trading, lending and investment banking.
JPM, BAC, GS, MS, WFC and Citi posted solid earnings and revenue beats.
Financial ETFs like IYG, IYF, KBWB, XLF and VFH may gain on the strength.
Interest rates remain elevated, geopolitical tensions remain in place, and markets have been on a volatile ride — yet the largest banks of the United States continued to post strong results. While retail investors may find the volatility unsettling — particularly those needing to liquidate equities or seeking quick gains — Wall Street banks are benefiting.
Strong trading activity, resilient consumer spending, healthy loan demand, good capital market activity, higher investment banking fees and a pickup in artificial intelligence (AI)-driven capital markets activity have fueled optimism.
Banking Earnings in Focus
JPMorgan's (JPM - Free Report) second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago. Reported net revenues of $57.35 billion rose 27.7% year over year and topped the consensus mark of $49.14 billion.
Strong Markets and investment banking (IB) activity powered core growth, while net interest income (NII) got support from decent loan demand.
Wells Fargo & Company (WFC - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.96, which surpassed the Zacks Consensus Estimate of $1.73. In the prior-year quarter, the company reported earnings per share of $1.54.Total revenues were $22.62 billion, surpassing the Zacks Consensus Estimate of $21.80 billion. Also, the top line increased 8.6% from the year-ago quarter.
Results benefited from an improvement in net interest income (NII), higher non-interest income, and lower provisions. Higher loan balances and improved deposits were other positives. However, increased non-interest expenses remained a headwind.
Citigroup Inc. (C - Free Report) reported second-quarter 2026 earnings per share of $3.15, which surpassed the Zacks Consensus Estimate of $2.72. In the prior-year quarter, the company reported earnings per share of $1.96.Revenues, net of interest expenses, were $24.8 billion in the second quarter of 2026, up 14.3% year over year. The top line surpassed the Zacks Consensus Estimate by 4.6%.
NII rose 12.8% year over year to $17.1 billion, while non-interest revenues increased 17.7% to $7.6 billion.
Bank of America's (BAC - Free Report) second-quarter 2026 earnings of $1.21 per share handily surpassed the Zacks Consensus Estimate of $1.13. The bottom line grew 34.4% year over year. Sales and trading revenues, excluding net DVA, grew 33% year over year to $7.16 billion. Fixed-income trading fees increased 8.8%, while equity trading income soared 69.9%.
Net revenues were $31.56 billion, which surpassed the Zacks Consensus Estimate of $30.62 billion. The top line rose 15% from the prior-year quarter.
Morgan Stanley's (MS - Free Report) second-quarter 2026 earnings were $3.46 per share, which easily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 62.4% from the prior-year quarter.
Net income applicable to Morgan Stanley was $5.58 billion, rising 57.7% year over year. Morgan Stanley's MS second-quarter 2026 earnings were $3.46 per share, which easily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 62.4% from the prior-year quarter.
The Goldman Sachs Group Inc. (GS - Free Report) has reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago. Net revenues were $20.34 billion, rising 39% year over year and comfortably surpassing the Zacks Consensus Estimate of $16.49 billion by 23.3%.
Bank ETFs in Focus
Continued strength in lending, trading and investment banking activities has been a key positive for the sector so far. Against this backdrop, financials-based exchange-traded funds (ETFs), such as iShares U.S. Financial Services ETF (IYG - Free Report) , iShares US Financials ETF (IYF - Free Report) , Invesco KBW Bank ETF (KBWB - Free Report) , Financial Select Sector SPDR (XLF - Free Report) and Vanguard Financials ETF (VFH - Free Report) should gain ahead.
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Big Banks Deliver Strong Q2: ETFs in Focus
Key Takeaways
Interest rates remain elevated, geopolitical tensions remain in place, and markets have been on a volatile ride — yet the largest banks of the United States continued to post strong results. While retail investors may find the volatility unsettling — particularly those needing to liquidate equities or seeking quick gains — Wall Street banks are benefiting.
Strong trading activity, resilient consumer spending, healthy loan demand, good capital market activity, higher investment banking fees and a pickup in artificial intelligence (AI)-driven capital markets activity have fueled optimism.
Banking Earnings in Focus
JPMorgan's (JPM - Free Report) second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago. Reported net revenues of $57.35 billion rose 27.7% year over year and topped the consensus mark of $49.14 billion.
Strong Markets and investment banking (IB) activity powered core growth, while net interest income (NII) got support from decent loan demand.
Wells Fargo & Company (WFC - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.96, which surpassed the Zacks Consensus Estimate of $1.73. In the prior-year quarter, the company reported earnings per share of $1.54.Total revenues were $22.62 billion, surpassing the Zacks Consensus Estimate of $21.80 billion. Also, the top line increased 8.6% from the year-ago quarter.
Results benefited from an improvement in net interest income (NII), higher non-interest income, and lower provisions. Higher loan balances and improved deposits were other positives. However, increased non-interest expenses remained a headwind.
Citigroup Inc. (C - Free Report) reported second-quarter 2026 earnings per share of $3.15, which surpassed the Zacks Consensus Estimate of $2.72. In the prior-year quarter, the company reported earnings per share of $1.96.Revenues, net of interest expenses, were $24.8 billion in the second quarter of 2026, up 14.3% year over year. The top line surpassed the Zacks Consensus Estimate by 4.6%.
NII rose 12.8% year over year to $17.1 billion, while non-interest revenues increased 17.7% to $7.6 billion.
Bank of America's (BAC - Free Report) second-quarter 2026 earnings of $1.21 per share handily surpassed the Zacks Consensus Estimate of $1.13. The bottom line grew 34.4% year over year. Sales and trading revenues, excluding net DVA, grew 33% year over year to $7.16 billion. Fixed-income trading fees increased 8.8%, while equity trading income soared 69.9%.
Net revenues were $31.56 billion, which surpassed the Zacks Consensus Estimate of $30.62 billion. The top line rose 15% from the prior-year quarter.
Morgan Stanley's (MS - Free Report) second-quarter 2026 earnings were $3.46 per share, which easily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 62.4% from the prior-year quarter.
Net income applicable to Morgan Stanley was $5.58 billion, rising 57.7% year over year. Morgan Stanley's MS second-quarter 2026 earnings were $3.46 per share, which easily outpaced the Zacks Consensus Estimate of $2.89. The bottom line surged 62.4% from the prior-year quarter.
The Goldman Sachs Group Inc. (GS - Free Report) has reported second-quarter 2026 earnings per share of $20.98, which topped the Zacks Consensus Estimate of $14.47. The metric also surged 92% from $10.91 a year ago. Net revenues were $20.34 billion, rising 39% year over year and comfortably surpassing the Zacks Consensus Estimate of $16.49 billion by 23.3%.
Bank ETFs in Focus
Continued strength in lending, trading and investment banking activities has been a key positive for the sector so far. Against this backdrop, financials-based exchange-traded funds (ETFs), such as iShares U.S. Financial Services ETF (IYG - Free Report) , iShares US Financials ETF (IYF - Free Report) , Invesco KBW Bank ETF (KBWB - Free Report) , Financial Select Sector SPDR (XLF - Free Report) and Vanguard Financials ETF (VFH - Free Report) should gain ahead.