Big Banks Signal Strong Second Half on Inflation and AI

The largest North American and European banks have reported double-digit gains in their second-quarter earnings, fueled by higher-for-longer inflation expectations. According to Global Finance Magazine, these banks expect full-year 2026 profits to meet or exceed projections.

Christopher Marinac, a banking analyst at Brean Capital, said that the steepening Treasury yield curve is allowing banks to improve spreads on loans and securities. 'The way banks are pricing loans is just stable to slightly better, and that is bullish for net income,' he stated.

JPMorgan Chase & Co., Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, Wells Fargo, Royal Bank of Canada, UBS, Barclays, and Deutsche Bank all reported significant gains in their second-quarter earnings. JPMorgan Chase saw a 41% increase in net income, while Goldman Sachs and Morgan Stanley posted gains of 84% and 57.7%, respectively.