JPMorgan Chase posts largest U.S. banking profit ever as all five major banks top expectations, easing recession concerns.
JPMorgan Chase reported a record $7.70 earnings per share for Q2, beating estimates of $5.72 and marking the largest quarterly profit in U.S. banking history. Net income surged 41%, driven by stable consumer credit and accelerating dealmaking activity.
All five major banks surpassed Q2 earnings expectations, challenging recession fears fueled by weak financial sector performance in 2026. The State Street Financial Select Sector SPDR ETF (XLF) has gained just 3% this year, trailing broader market returns amid concerns over Fed policy and private credit growth.
The results suggest recession-driven pessimism may already be reflected in bank valuations, though financial stocks remain under pressure relative to the broader market.