US banks kick off earnings season with bumper profits

The news: Wells Fargo, JPMorgan Chase and Bank of America reported strong profits and higher revenue as second-quarter earnings season got underway in the United States.

The numbers: Wells Fargo’s profit rose 17%, with net income of USD 6.4 billion and revenue up 9% to USD 22.6 billion, beating Wall Street estimates. JPMorgan Chase’s profit jumped 41% to USD 21.2 billion, while revenue rose 28% to USD 57.4 billion. Earnings per share comfortably beat analyst forecasts, helped by a one-off gain in the value of its Visa shares. Bank of America’s profit increased 27%, with net income of USD 9.1 billion and revenue up 15% to USD 31.6 billion. These better-than-expected results were driven by trading revenue in volatile markets and higher investment banking fees as dealmaking picked up.

What they said: “However, several risks are shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices,” JPMorgan Chase CEO Jamie Dimon said.