JPMorgan Chase led the group with $21 billion in profit, up more than 40% from a year earlier|Ben Sutherland|CC BY 2.0

The five biggest banks of the country delivered a record-breaking second quarter, far exceeding expectations.

JPMorgan, Bank of America, Goldman Sachs, Wells Fargo, and Citigroup together earned $49 billion in the most recent quarter, benefiting from the AI boom and market volatility surrounding the Iran conflict.

The strong results suggest that the US economy continues to hold up despite concerns over inflation, energy prices and geopolitical risks.

JPMorgan Chase led the group with $21 billion in profit, up more than 40% from a year earlier. The bank benefited from a $4.6 billion gain on its Visa investment, along with strong investment banking and trading revenue.

Bank of America earned $9 billion, driven by higher trading income and customer spending, while adding 1 million new credit card accounts during the quarter. 

Goldman Sachs posted $6.6 billion in profit as merger activity and AI-related financing deals surged. 

Wells Fargo and Citigroup each earned nearly $6 billion, with Citigroup recording its highest quarterly revenue in ten years.

Banks also benefited from booming stock markets, strong trading activity, and growing investments in artificial intelligence.

SpaceX’s blockbuster $85 billion IPO and volatile markets proved a winning combination, with participating banks earning about $500 million from the offering and more from AI- and Iran-driven market swings.

Banks also profited from a wave of M&A activity and fundraising by AI companies racing to build their data centers and other infrastructure.

Moreover, consumers continued to borrow and spend despite higher living costs, while low loan defaults and higher interest rates boosted earnings.

But
Executives warned that risks such as global conflicts, sticky inflation and elevated asset prices remain, but they said strong employment and resilient consumer spending continue to support the US economy. 

They also expect more AI-related public listings in the coming months, creating fresh opportunities for investment banking and trading.