US Banks Post Blockbuster Second Quarter as Goldman Sets a Record

The five biggest US banks kicked off earnings season on July 14 with results that underscored the strength of diversified banking models. Goldman Sachs delivered the best quarterly performance in its history, reporting net revenues of about $20.34 billion and net earnings of roughly $6.63 billion for the quarter ended June 30, with diluted earnings per share of $20.98, close to double the level a year earlier and a revenue gain of around 39 percent. JPMorgan Chase, the largest US bank by assets, posted a profit increase of about 41 percent from a year earlier, beating expectations on both earnings and revenue, with strength concentrated in investment banking and trading. Bank of America, Citigroup and Wells Fargo also reported the same morning. Results were flattered by heightened market volatility, a rebound in mergers and capital-markets activity, and fee income tied to a wave of large listings during the quarter. Executives struck a cautious note on the outlook, however, pointing to an uncertain Federal Reserve rate path, elevated oil prices and the need to watch consumer credit quality closely in the months ahead.