U.S. Banks Report

July 16, 2025 – This week, several major U.S. banking institutions, including Goldman Sachs Group, Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), Bank of America Corporation (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Company (NYSE: WFC), and Citigroup Inc. (NYSE: C), released their second quarter 2025 earnings reports. The results paint a complex picture of the banking sector, with strong revenue growth in some areas, tempered by rising credit provisions and economic uncertainties. Below, we analyze the key financial highlights, segment performances, and shareholder returns, drawing comparisons across these financial giants.

Financial Performance Overview

The six banks reported varied financial outcomes, reflecting their differing business models and market exposures. Goldman Sachs posted net revenues of $14.58 billion, a 15% increase from Q2 2024, driven by a robust 24% surge in Global Banking & Markets revenues. However, its net earnings of $3.72 billion were down 21% from Q1 2025. Morgan Stanley reported $16.8 billion in net revenues, up 11.8% year-over-year, with net income rising 12.9% to $3.5 billion. Its Wealth Management segment was a standout, contributing $7.8 billion in revenues, a 14% increase from Q2 2024.

Bank of America saw total revenues climb 4% to $26.5 billion, with net income up 3% to $7.1 billion, bolstered by a 7% rise in net interest income to $14.7 billion. JPMorgan Chase, despite a 10% drop in total revenue to $44.9 billion, reported a solid net income of $15.0 billion, though this was down 17% from Q2 2024. Wells Fargo’s total revenue edged up 0.6% to $20.8 billion, with net income increasing to $5.5 billion, a 12% improvement year-over-year. Citigroup’s revenues rose 8% to $21.7 billion, with net income jumping 25% to $4.0 billion, driven by strong performances in Markets and Wealth segments.

Segment Performance Comparisons

Investment Banking and Markets

Goldman Sachs and Morgan Stanley, both heavily reliant on investment banking, showed strength in this area. Goldman’s Investment Banking fees rose 26% to $2.19 billion, with Equities revenues soaring 36% to $4.30 billion. Morgan Stanley’s Institutional Securities segment, which includes investment banking, grew revenues by 9.5% to $7.6 billion, though its investment banking revenues dipped 5% due to weaker M&A activity. JPMorgan’s Commercial & Investment Banking segment reported a 9% revenue increase to $19.5 billion, with investment banking fees up 7%. Citigroup’s Markets segment shone with a 16% revenue increase to $5.9 billion, driven by a 20% rise in Fixed Income Markets.

Bank of America’s Global Markets segment also performed well, with revenues up 10% to $6.0 billion, fueled by a 14% increase in sales and trading revenue (excluding net DVA). Wells Fargo’s Corporate and Investment Banking segment, however, saw a 3% revenue decline to $4.7 billion, impacted by lower interest rates.

Wealth and Asset Management

Wealth and asset management segments were bright spots for several banks. Morgan Stanley’s Wealth Management revenues grew 14% to $7.8 billion, with fee-based client assets up 13.2% to $2.478 trillion. Bank of America’s Global Wealth and Investment Management segment reported a 7% revenue increase to $5.9 billion, with client balances rising 10% to $4.4 trillion. JPMorgan’s Asset & Wealth Management segment saw revenues climb 10% to $5.8 billion, with assets under management up 18% to $4.3 trillion. Citigroup’s Wealth segment revenues increased 20% to $2.2 billion, with net income surging 135% to $494 million. Wells Fargo’s Wealth and Investment Management revenues grew modestly by 1% to $3.9 billion, driven by higher market valuations.

Consumer Banking

Consumer banking results were mixed. Bank of America’s Consumer Banking segment delivered a 6% revenue increase to $10.8 billion, with average deposits up 32% from pre-pandemic levels. Wells Fargo’s Consumer Banking and Lending segment saw a 2% revenue increase to $9.2 billion, boosted by a 9% rise in credit card income. Citigroup’s U.S. Personal Banking segment reported a 6% revenue increase to $5.1 billion, with net income soaring 436% to $649 million. JPMorgan’s Consumer & Community Banking segment outperformed with a 6% revenue increase to $18.8 billion and a 23% rise in net income to $5.2 billion. Goldman Sachs and Morgan Stanley, with less focus on consumer banking, did not report comparable segment data.

Credit Quality and Provisions

Credit quality remained a key focus as economic uncertainties persisted. Bank of America’s provision for credit losses rose to $1.6 billion, with net charge-offs flat at $1.5 billion. Wells Fargo’s provision decreased 18.7% to $1.0 billion, with net loan charge-offs improving to 0.44% of average loans. Citigroup’s total credit losses increased to $2.9 billion, with non-accrual loans up 49% to $3.4 billion. JPMorgan’s provision for credit losses was $2.8 billion, with net charge-offs up 8% to $2.4 billion. Goldman Sachs reported a 36% increase in provisions to $384 million, reflecting cautious risk management. Morgan Stanley’s provision rose to $196 million from $76 million in Q2 2024.

Shareholder Returns

All banks emphasized returning capital to shareholders. Goldman Sachs increased its quarterly dividend to $4.00 per share from $3.00 and repurchased $3.0 billion in shares. Morgan Stanley raised its dividend to $1.00 per share and repurchased $1.0 billion in stock, with a $20 billion multi-year repurchase program reauthorized. Bank of America returned $5.3 billion via share repurchases and increased its dividend by 8% to $0.26 per share. JPMorgan declared a $1.40 per share dividend and repurchased $7.1 billion in stock. Wells Fargo repurchased $3.0 billion in shares and anticipates a 12.5% dividend increase for Q3 2025. Citigroup returned $3.1 billion to shareholders, including $2 billion in share repurchases.

Capital Strength

Capital ratios remained robust across the board. JPMorgan and Morgan Stanley both reported a CET1 ratio of 15.0%, while Bank of America’s was 11.5%. Wells Fargo’s CET1 ratio held steady at 11.1%, and Citigroup’s was 13.5%. Goldman Sachs reported a CET1 ratio of 14.5%, reflecting strong capital positions to weather potential economic challenges.

Conclusion

The Q2 2025 earnings season for major U.S. banks reveals a sector navigating a complex economic environment with resilience. Goldman Sachs and Morgan Stanley capitalized on strong investment banking and wealth management performance, while Bank of America and JPMorgan benefited from robust consumer banking and markets activity. Wells Fargo and Citigroup showed progress in transforming their operations, with improved earnings and credit quality. Despite rising provisions and economic uncertainties, the banks’ focus on shareholder returns and capital strength underscores their confidence in long-term stability. As the economic landscape evolves, these institutions are well-positioned to adapt, leveraging their diversified business models to drive growth.