JPMorgan Chase reported a 9% increase in second-quarter profits, excluding one-time items, reaching $14.2 billion compared to $13.1 billion in the same period last year. The results were buoyed by a $774 million tax benefit and strong trading and investment banking performance.
The mood in financial markets has shifted since the first quarter, when dealmaking stalled and Trumpโs April 2 “Liberation Day” tariffs triggered market turbulence. Now, a mix of red-hot IPOs, major M&A deals, and regulatory easing for big banks has revived optimism.
JPMorgan’s trading revenue rose 8% to $8.9 billion, with gains in both equities and fixed income. Its consumer banking, asset, and wealth management divisions also saw revenue growth, though corporate division revenues declined.
Wells Fargo also benefited from the rebound in investment banking, with fees rising 10% to $696 million and total profits up 12%.
Wall Street trading desks have capitalized on recent market volatility, with investor activity surging in response to tariffs and shifting fiscal policies.
The latest earnings season begins this week, and banks are entering it with cautious optimism, buoyed by stronger-than-expected results and a more favorable policy environment.