Big US Banks Post Record Second-Quarter Profits on Trading Boom

The largest US banks kicked off earnings season with record-smashing second-quarter results, collectively earning roughly $49 billion as market volatility and a resurgence in dealmaking lifted trading and investment banking revenue. Citigroup stood out, posting a 45% jump in net income to $5.8 billion, or $3.15 per share, on its highest quarterly revenue in a decade at $24.8 billion, well above expectations. Goldman Sachs shares surged around 9% to lead the Dow after strong growth in its global banking and markets business, with Chief Executive David Solomon noting the firm's deal backlog is at a five-year high. Bank of America and Wells Fargo also beat forecasts. Executives attributed the strength to a broad market recovery, heavy trading activity spurred by swings in oil, currencies and interest rates, lighter regulation encouraging acquisitions, and a scramble for AI-related assets. Some analysts sounded a note of caution, warning that record equities-trading revenue reflects heavy use of borrowed money by hedge funds and retail investors, which could amplify losses in any market correction. JPMorgan's Jamie Dimon also signalled AI would drive efficiency gains across the bank.