What can we learn from the recent quarterly results of major U.S. banks?

By Hervé Prettre, Global Head of Investment Research at Edmond de Rothschild

How did U.S. banks perform?

The leading U.S. banks exceeded earnings per share (EPS) expectations in the first quarter of 2026, with year-over-year growth of +17% at JPMorgan, +23% at Wells Fargo, +24% at Goldman Sachs, +32% at Morgan Stanley, and +56% at Citi.

What are the drivers of profitability?

Revenue at major banks was supported both by net interest income (NII), derived from lending activities, and by non-interest income, which includes fees generated from wealth management as well as trading and investment banking activities. Trading performed particularly well—especially in equities—driven by renewed market volatility during the first quarter. In addition, investment banking activities were especially strong, largely thanks to fees from financial advisory services.

Outlook

Many banks have warned of a more challenging macroeconomic environment. However, the strong first-quarter results from investment banking highlight the resilience of their business models.

We continue to favor certain large-cap U.S. banks, supported by the significant contribution from high-margin investment banking and wealth management activities. We take a more cautious stance toward regional banks and those with high exposure to consumer lending, due to uncertainty surrounding both U.S. consumption prospects and the outlook for interest rates.