Big Banks Smash Earnings Records, but ‘Tectonic’ Risks Loom

In a world of uncertainty, Wall Street continues to find a way to make money.

That was underscored on Tuesday when, amid the latest flare up in the war with Iran, the five largest banks in the United States reported a collective $49 billion in profits in the second quarter, smashing records and exceeding analysts’ projections.

The earnings reports reflect the growing dichotomy between geopolitical turmoil in the Middle East and a strengthening American economy. The big banks took advantage of one of the best periods of deal-making booms in recent memory and of a roaring stock market, fueled by the build out of artificial intelligence.

The banks cited little evidence that topsy-turvy energy prices, driven higher by the protracted conflict over the Strait of Hormuz, or even a relatively stagnant environment for wages are weighing heavily on the economy or their core businesses.

“It would be naïve not to be worried,” Jeremy Barnum, JPMorgan Chase’s chief financial officer, told reporters on Tuesday, “but it’s always easy to be worried and then the market keeps going up.”

Article source: https://www.nytimes.com/2026/07/14/business/jpmorgan-goldman-bofa-wells-fargo-bank-earnings.html