Major US banks post strong Q1 results despite market volatility

Major US banks reported solid first-quarter earnings, showing resilience amid heightened market volatility linked to the Middle East conflict, with trading and investment banking activity supporting strong results.

JPMorgan Chase led the sector with the highest revenue and profit, posting a 12.6% increase in net income to $16.5 billion, while revenue rose to $49.8 billion. Earnings per share stood at $5.94, with market revenues jumping around 20% on the back of strong trading and investment banking activity.

CEO Jamie Dimon said fiscal stimulus, deregulation, artificial intelligence-driven investment and Federal Reserve asset purchases helped support the sector, while warning that geopolitical tensions, energy price volatility and global fiscal risks remain key concerns.

Citigroup posted the strongest growth in net income, which surged 42% year-on-year to $5.8 billion. Revenue rose 14% to $24.6 billion, with earnings per share at $3.06, supported by higher trading activity amid market volatility.

Wells Fargo reported a 7.3% increase in net income to $5.3 billion, while revenue rose 6.5% to $21.45 billion. Earnings per share climbed 15.1% to $1.60. CEO Charlie Scharf said the underlying economy remained strong, with consumers and businesses maintaining solid financial health.

Morgan Stanley recorded one of the strongest revenue gains, rising 16% to $20.6 billion, while net income increased about 29% to $5.6 billion. The performance was driven by a 25% rise in trading revenue and record income from its wealth management division.

Bank of America posted a 16.2% increase in net income to $8.6 billion, with revenue rising 7.4% to $30.3 billion. The bank cited strong equity trading and a rebound in investment banking fees as key drivers.

Goldman Sachs reported a 14% rise in revenue to $17.23 billion, the lowest among major US banks, while net profit increased 19% to $5.63 billion. CEO David Solomon said the bank delivered a strong performance despite challenging market conditions.

Overall, banks benefited from increased trading volumes and client activity driven by geopolitical uncertainty, even as executives warned that risks linked to global tensions and economic imbalances persist.

*Writing by Emir Yildirim