Wall Street banks post record profits as trading surges and mega-deals top $3 trillion

A record quarter for the biggest banks

Four of the largest U.S. banks reported a collective $43 billion in profit for the second quarter, according to The New York Times, smashing analyst expectations. JPMorgan Chase led the group with a net income of $21.2 billion, or $7.70 per share, up from $14.99 billion a year earlier. Goldman Sachs posted $6.63 billion, or $20.98 per share, compared with $3.72 billion in the same period last year. Bank of America earned $9.1 billion, or $1.21 per share, up from $7.2 billion. Wells Fargo turned a profit of more than $6 billion, as consumers and businesses borrowed more.

The U.S. economy has demonstrated notable resiliency this year, with stronger business investment and hiring.

Trading desks ride the volatility wave

Market turbulence driven by the Middle East conflict and uncertainty over the interest-rate path fuelled a trading windfall. Goldman Sachs' equities business fetched revenue of $7.42 billion, surging 72% from a year ago, while its fixed income, currency and commodities revenue jumped 32% to $4.59 billion. Bank of America's sales and trading revenue hit a record $7.1 billion, with equities revenue climbing 70% to $3.6 billion. JPMorgan's equity trading revenue surged 86%, and fixed-income trading increased 6%. The ongoing conflict between the U.S. and Iran, and disruptions to shipping through the Strait of Hormuz, rattled investors and drove swings across asset classes.

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The mega-deal machine

Global M&A volumes hit record levels in the first half of 2026, with the value of announced deals surpassing $3 trillion, according to Dealogic data. A surge in transactions valued at over $10 billion drove the boom, aided by a more lenient regulatory environment under the Trump administration. Goldman Sachs advised on more than $1 trillion worth of announced mergers and acquisitions in the first half, marking a record pace. JPMorgan retained the top spot in global investment banking league tables, generating the highest investment banking revenue in the industry.

Landmark transactions define the quarter

Several blockbuster deals punctuated the period. Elon Musk's SpaceX completed its IPO toward the end of the quarter, a more than $2 trillion debut that marked the largest listing in history. Goldman Sachs was a lead underwriter, while JPMorgan and Bank of America Securities acted as joint book-running managers. JPMorgan also served as co-adviser on NextEra Energy's $67 billion merger with Dominion Energy and as lead active bookrunner on Alphabet's $85 billion equity offering. Bank of America advised on NextEra's $66.8 billion deal to buy Dominion Energy.

Investment banking fees surge

Goldman's investment banking fees rose 55% to $3.40 billion in the quarter, helped by higher stock and debt sales and a stronger advisory arm. JPMorgan's investment banking fees increased 30%, higher than the bank's earlier estimate. Bank of America's total investment banking fees rose 50% to $2.1 billion. The U.S. IPO market staged a broad-based recovery after years of drought, giving private equity and venture capital firms more avenues to exit investments.

Resilience amid persistent risks

Despite the record results, executives flagged lingering concerns. Jamie Dimon warned of "risks shifting below the surface like tectonic plates, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices." Brian Moynihan, Bank of America's CEO, attributed the performance to a "healthy economic backdrop" and "resilient" consumer and business clients. Charlie Scharf of Wells Fargo noted concerns around affordability and inflation but said strong employment and wage growth were offsetting those pressures. Bank of America's net interest income rose 9% to $16 billion, while average loans and leases grew 1% to $321 billion.