Major US Banks' Second-Quarter Earnings Poised for Upside, BofA Says
Major US banks could top second-quarter earnings expectations amid gains from capital markets activity, with JPMorgan Chase (JPM) and Wells Fargo (WFC) seen as having the "most interesting" setups heading into the results, BofA Securities said Tuesday. JPMorgan, Wells Fargo, Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS), Bank of New York Mellon (BNY), State Street (STT), and Northern Trust (NTRS) may also raise their guidance for the second half of the year and 2027, the brokerage said. Several mega-cap banks are scheduled to release their quarterly results next week. BofA revised its second-quarter earnings-per-share estimates for the eight banks by 1.8% on average, indicating year-over-year growth of 27%. "Capital markets should drive EPS beats, but it is the non-capital markets results that are more likely to drive stock price action," BofA analyst Ebrahim Poonawala said in a note to clients. "While (Wall) Street tends to look past trading/investment banking beats, potential for positive net interest income revisions and stronger wealth management flows likely get rewarded despite a high bar." JPMorgan and Wells Fargo have the "most interesting" setups heading.
Major US banks could top second-quarter earnings expectations amid gains from capital markets activity, with JPMorgan Chase (JPM) and Wells Fargo (WFC) seen as having the "most interesting" setups heading into the results, BofA Securities said Tuesday.
JPMorgan, Wells Fargo, Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS), Bank of New York Mellon (BNY), State Street (STT), and Northern Trust (NTRS) may also raise their guidance for the second half of the year and 2027, the brokerage said.
Several mega-cap banks are scheduled to release their quarterly results next week.
BofA revised its second-quarter earnings-per-share estimates for the eight banks by 1.8% on average, indicating year-over-year growth of 27%. "Capital markets should drive EPS beats, but it is the non-capital markets results that are more likely to drive stock price action," BofA analyst Ebrahim Poonawala said in a note to clients. "While (Wall) Street tends to look past trading/investment banking beats, potential for positive net interest income revisions and stronger wealth management flows likely get rewarded despite a high bar." JPMorgan and Wells Fargo have the "most interesting" setups heading.