News Digest: US Banks’ Q2 Results – Buoyancy amidst Uncertainty
July 11, 2025
Major U.S. banks are poised to report stronger second-quarter profits, driven by robust trading activity and a modest recovery in investment banking. As JPMorgan Chase, Citigroup, and Wells Fargo lead next week’s earnings reports, investor focus will be on their outlooks amidst ongoing economic uncertainty from U.S. tariff policies.
Analysts anticipate most banks will exceed expectations, with a continuation of positive trends. Investment banking has seen a pickup in the latter half of the quarter, reversing an April slowdown caused by escalating trade tensions. Trading revenues are also expected to remain strong due to the volatile macroeconomic and geopolitical environment.
Banks are projected to see low-to-mid single-digit gains in net interest income and set aside less for loan losses, reflecting resilient consumer and business credit quality. Loan demand, though muted, is showing signs of improvement, with industry growth potentially reaching 5%. Furthermore, banks are expected to benefit from the Trump administration’s deregulatory policies and recently demonstrated capital strength in Fed stress tests, leading to increased dividends and share buybacks
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