What is the reason for expecting higher-than-expected earnings?

Strong capital markets activity, including M&A, IPOs, and improved trading, is the main driver.

Did the analyst change the recommendation?

No, the analyst kept the recommendation unchanged but raised earnings estimates.

Major US Banks May Beat Q2 Earnings Estimates, BofA Says

A Bank of America analyst suggests that major US banks could report higher-than-expected Q2 earnings, supported by gains in capital markets.

July 7, 2026

2 min read

Source: MT Newswires

A Bank of America analyst expects major US banks, including JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), and Citigroup (C), to potentially beat second-quarter earnings estimates, driven by strong capital markets activity.

Change in Recommendation

The analyst has not changed the current recommendation but raised earnings estimates ahead of the official announcements, citing that capital markets gains may exceed previous projections.

Analyst's Rationale

The analyst points to increased M&A activity, IPOs, and improved trading revenues as key drivers. Additionally, the current interest rate environment supports lending margins.

Context

This outlook follows a strong Q1 for the banking sector, where major banks beat expectations. Analysts remain divided on whether this growth is sustainable.

What to Make of It

The estimates suggest that banks with greater exposure to capital markets, such as Goldman Sachs and Morgan Stanley, may benefit the most. Investors should watch for official guidance during earnings releases.

Frequently Asked Questions

The report covers JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), and Citigroup (C).

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.