What factors are driving profit growth according to RBC?

Higher net interest income due to elevated interest rates and growth in noninterest income such as investment banking fees.

How did the bank index perform in Q2?

The KBW Bank Index rose about 5% in the second quarter.

Does the forecast recommend buying bank stocks?

No, the forecast is neutral and does not constitute a buy or sell recommendation.

RBC Sees Double-Digit Q2 Profit Growth for US Banks

RBC Capital Markets expects major US banks to report double-digit growth in second-quarter core earnings, boosted by higher net interest income and noninterest income gains.

July 1, 2026

2 min read

Source: MT Newswires

RBC Capital Markets expects major US banks, including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), and Citigroup (C), to report double-digit growth in second-quarter core earnings, according to a research note released today.

Forecast Details

Analysts at RBC said banks will benefit from higher net interest income (NII) due to elevated interest rates, as well as growth in noninterest income such as investment banking fees and asset management fees. They also expect banks to report positive results in the second quarter.

Sector Performance

The forecast comes amid mixed performance for bank stocks, with the KBW Bank Index (BKX) rising about 5% in the second quarter, influenced by expectations of Federal Reserve rate cuts.

What It Means for Investors?

RBC's forecast suggests that the current high-interest-rate environment continues to support bank profitability, despite concerns about an economic slowdown. However, investors should monitor management guidance on NII for the third quarter, as some banks may signal potential headwinds.

Frequently Asked Questions

The forecast covers JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, and Citigroup.

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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.