JPMorgan, Goldman Sachs, and peers report stronger-than-expected revenue from IPOs, trading, and advisory fees in Q2.
Major U.S. banks posted better-than-expected second-quarter earnings, fueled by a rebound in investment banking fees and elevated trading volumes. The surge in IPO underwriting and capital markets activity disproportionately benefited large, diversified institutions like JPMorgan Chase and Goldman Sachs.
Analysts had anticipated a modest recovery after a weak 2023, but Q2 results surpassed consensus estimates. Trading revenue, particularly in fixed income and equities, remained robust amid market volatility, while advisory fees rose sharply as deal activity accelerated.
Shares of top banks rose in pre-market trading, reflecting investor optimism about the capital markets upcycle. The trend suggests a broader recovery in financial services, though smaller regional banks lagged behind.