US Banks: 2Q26 GSIB Earnings, Investment Banking, and Market Shares Tables

Research evidence excerpt

US Banks: 2Q26 GSIB Earnings, Investment Banking, and Market Shares Tables

Executive Summary

Second quarter results revealed a dynamic and varied landscape for the major US Banks... Nearly all firms topped cons ests primarily

through fee income trends (largely trading activities and investment banking) despite the concerns for NII and industry-wide deposit

pricing. While NII and margins are facing ramping deposit cost pressures, and likely continue to be of focus for 2H26, strong equities and

fixed income trading, coupled with disciplined expense management in most cases, drove significant PPNR beats in both 1Q and 2Q26.

Despite the increasing P/TBV valuations over the past 6 months, nearly all banks continued to execute on their substantial buyback

programs.

• JPMorgan Chase (JPM) reported a softer core PPNR vs cons (ex Visa). While NII was in-line with expectations, the bank's 2Q bright spot

came from its fee income, largely driven by a significant beat in Equities trading, which brought in $6.03B against a cons of $4.05B. This

strength was counterbalanced by an elevated expense base. Mgmt increased its NII ex-markets guide to $96.5 billion but also raised its

adjusted expense guide to $107.5 billion, reflecting higher revenue-related costs. Based on early results, JPM continues to hold a leading

market share in FICC.

• Bank of America (BAC) outperformed expectations with a solid core PPNR beat vs cons, attributed to stronger-than-expected fee

income and well-managed expenses, which resulted in approximately 660bps of positive operating leverage. This strong performance

led management to raise its full-year operating leverage guidance by 100bps. Although NII was slightly below consensus, the bank's