New York — America’s largest banks are thriving under President Donald Trump’s economic policies, with the six biggest institutions reporting a combined $39 billion in Q2 profits, a more than 20% increase in core earnings from the previous year.
The boom is fueled by surging stock and bond trading, corporate deal-making, and strong consumer borrowing trends, creating one of the most profitable environments for financial firms in years.
“We’re essentially firing on all cylinders,” said Jeremy Barnum, CFO of JPMorgan Chase. “Rates are a good level for us. Deal activity is high. Capital markets are very strong. Consumer credit is excellent.”
JPMorgan Chase alone accounted for $15 billion in profit, matching the combined output of its next three peers. A rebound in investment banking fees, despite early-quarter turbulence from Trump’s “Liberation Day” tariffs, defied expectations.
Trump’s Economic Policies Fuel Optimism
The strong bank earnings come despite early fears of a recession sparked by Trump’s aggressive trade policy moves in April. Markets recovered after the administration delayed harsher tariff actions, helping restore investor confidence.
Jamie Dimon, CEO of JPMorgan, noted a stabilizing global outlook:
“It’s been resilient, and hopefully it’ll continue to be... The world is more diversified now, creating a more stable global economy.”
Banks also welcomed Trump’s recent deregulatory push and a corporate-friendly spending bill signed this month, which preserved tax cuts and expanded business deductions.
Main Street Strength Matches Wall Street Gains
Consumer behavior remains a bright spot. Loan growth rose by 5% at JPMorgan, supported by rising credit card usage and corporate lending. Credit quality remains high, with provisions for credit losses down 14% from Q1, signaling reduced risk of defaults.
“Talk of a recession is pretty much absent,” said Mike Mayo, banking analyst at Wells Fargo.
Legacy Banks Rebounding
Even industry laggards are showing signs of revival. Wells Fargo CEO Charlie Scharf celebrated the removal of long-standing Fed restrictions, awarding a $2,000 bonus to employees. Citigroup’s shares have surged 30% YTD, with CEO Jane Fraser unveiling a new luxury credit card and plans for a Citi-branded stablecoin.
“The strength of the U.S. economy has certainly been exceeding expectations,” Fraser told analysts.
