Big Banks Beat Earnings (and Hid the Cracks in Plain Sight)
EPS beats are everywhere, but revenue momentum is quietly rolling over.
The first wave of U.S. bank earnings delivered a familiar message: EPS beats driven by cost control and trading strength, but revenue trends are increasingly uneven.
JPMorgan Chase JPM 0.00%↑ set the tone.
EPS came in meaningfully ahead of expectations, with revenue modestly above consensus. Trading and markets held up well, credit costs remained contained, and balance sheet strength continues to separate JPM from the pack. It remains the sector’s benchmark for earnings durability.
Bank of New York Mellon BK 0.00%↑ followed with a clean quarter.
Both EPS and revenue beat estimates, reflecting steady fee income and disciplined expense management. Not flashy, but exactly what investors expect from a custody-heavy model in a volatile macro environment.
Mid-week results were more mixed.
Bank of America BAC 0.00%↑ delivered a narrow EPS beat alongside a modest revenue beat.
Net interest income continues to grind lower sequentially, but not faster than feared. This was a “no bad news” quarter rather than a reacceleration story.
Wells Fargo WFC 0.00%↑ and Citigroup C 0.00%↑ both beat EPS but missed on revenue.
The common theme: softer fee income and pressure in certain consumer and institutional segments. Cost discipline is doing the heavy lifting, but topline momentum remains the weak link.
Early Thursday reports leaned constructive again.
Goldman Sachs GS 0.00%↑ posted a large EPS beat despite a revenue miss.
Trading strength and operating leverage offset weaker investment banking fees. The setup reinforces that earnings power is highly cyclical — when activity returns, upside torque is significant.
Morgan Stanley MS 0.00%↑ delivered beats across both EPS and revenue.
Wealth and asset management stability continues to smooth volatility from investment banking, reinforcing MS as the most balanced large-cap investment bank.
BlackRock BLK 0.00%↑ rounded out the group with beats on both lines.
Flows, fees, and operating leverage all moved in the right direction, signaling that asset managers remain early-cycle beneficiaries if markets stay constructive.
Bottom line:
Earnings quality remains better than headlines suggest. EPS beats are broad, but revenue dispersion is widening. The market is rewarding banks with diversified fee streams and punishing those still reliant on NII recovery. For now, this is a “selectivity, not sector beta” environment.
This publication is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. All views expressed are opinions based on publicly available information and are subject to change without notice