Bank earnings live updates: Jamie Dimon says AI has helped JPMorgan cut up to 40% of jobs in certain roles

Goldman Sachs CEO David Solomon starts off the analyst call today by saying that even with the strong quarter for investment bankers, its deals backlog is at the highest level in five years.

That backlog, if converted into closed deals, bodes well for Goldman revenue in future quarters.

The firm’s reputation as premier advisors to the C-suite for mergers advice is leading to business in other parts of Goldman, including trading, financing, risk management and wealth management, he said.

“We believe there is substantial runway to deepen the connectivity between advisory financing and capital markets, investing and wealth management,” he said.

Goldman shares are now up more than 6%.

— Hugh Son

Jamie Dimon was asked if the bank was underselling the potential efficiency impact of artificial intelligence.

After all the (much smaller) fintech firm Block said in February that it was using AI to help cut about 40% of its workforce, an analyst noted.

“We are going to use AI to do a better job for clients. … We fully expect it will have huge efficiency in certain parts of the company,” Dimon said.

There are nearly a thousand use cases for AI at the bank, Dimon said, but he highlighted “risk fraud, marketing, hedging, prospecting, note taking, idea generation, document reading” as some of the key areas.

“It’s kind of just starting,” Dimon said. “We have had discrete areas where we did reduce jobs by 30% or 40%. And most of those people were offered jobs elsewhere.”

JPMorgan had 320,560 employees at the end of June, which is basically flat from the first quarter.

— Hugh Son

JPMorgan CEO Jamie Dimon had a terse response to a question about how long the bank’s hot streak will last.

“It’s getting close to as good as it gets,” he said of the banking environment. “We just don’t know how long it’s going to last.”

Asked for a follow-up, he said: “I just think we’re in a very healthy, active, exuberant market with very high prices and very high volumes. And we benefit from that. We just don’t know how long it will continue.”

— Leslie Picker and Hugh Son

The UBS analyst Erika Najarian was among several to ask JPMorgan CEO Jamie Dimon about his succession plans.

The recent announcement of the exit of Marianne Lake, whom several analysts believed was the top CEO candidate, led investors to think that perhaps Dimon wasn’t planning on leaving anytime soon, Najarian said.

Dimon said that his timing is “essentially the same” and is “completely up to the board.”

The next JPMorgan CEO will have to be good with people, analytical,  detailed, curious, and be able to deal with call center employees and prime ministers alike, he said.

Then there are the intangibles: “You want to have heart. You want to have grit. You want to have soul. You have to have work ethic. You want to be able to travel,” Dimon said.

“At the end of the day, we’re blessed with a lot of people who are great culture carriers across a broad spectrum,” Dimon said. “No one has all those things in the perfect way. And some of the things you learn and some of those things you get better at.”

— Hugh Son

BofA CFO Alastair Borthwick said on a call with analysts that client balances reached a record $4.9 trillion, up 12% from a year ago.

“With good expense discipline, we generated another quarter of positive operating leverage and saw pre-tax margins expand to more than 27%, demonstrating the scalability of this business,” he said.

— Laya Neelakandan

JPMorgan CEO Jamie Dimon spoke on the earnings call about the sudden exit last month of longtime executive Marianne Lake, who had been considered a top candidate to replace him leading the bank.

“Marianne is an exceptional individual as a human being, as a leader, and obviously as an executive, but the board made a decision to go ahead with making two co-presidents, which will be preparing them to do far more at the company” he said.

Doug Petno and Troy Rohrbaugh, who have jointly led the bank’s commercial and investment banking division since early 2024, were made co-presidents last month.

Dimon said that hasn’t changed the timetable for when he plans to step down.

“Obviously wish Marianne the best,” he continued. “She decided she when she knew about the plans that she’d rather retire than stay here. So that’s it. No mystery.”

— Ritika Shah

Bank of America CEO Brian Moynihan on a call with analysts touted the growth and opportunities with artificial intelligence as the bank develops more tools.

He also said the consumer remains resilient.

“Overall, the U.S. economy has proved more durable than expected, supported by the strong consumer, ongoing AI-driven investments across the board and easing energy costs, though inflation and tighter monetary policy remain key risks,” he said.

– Laya Neelakandan

When it comes to one of the only (slight) misses in the quarter — the fixed income trading business JPMorgan cited weakness in commodities.

While CFO Jeremy Barnum said that overall, the firm was pleased with its fixed income performance, he did hint that the Iran war turbulence might have weighed on that business.

But “on the commodities front, obviously it’s been a very complicated situation in energy and oil, particularly what’s going on in the Strait of Hormuz,” Barnum said.

— Hugh Son

Bank of America is now holding a conference call with analysts to discuss its second-quarter earnings results. The call is hosted by company executives, including CEO Brian Moynihan.

Shares of Bank of America are down slightly.

– Laya Neelakandan

In regards to JPMorgan’s massive equities beat, CFO Jeremy Barnum had this to say: “These are booming environments with a ton of activity, big IPOs, big index rebalancing, a lot of activity in Asia.”

“A lot of it is downstream of the AI theme writ large on a global basis, and it’s just a very, very, very active environment,” he continued.

AI is “having impacts everywhere in financial markets, and maybe we’re starting to see some if it in the real economy as well,” Barnum said.

— Hugh Son

Jamie Dimon is being asked about the impact of higher oil prices, given the continued strife in the Middle East.

“It’s fair to say that the global economy has probably been more resilient than people would have expected, including us,” Dimon said.

He cited research saying that energy costs are a fraction of what they were in the 1970s and 1980s, making them less of a factor.

“It does not mean there’s not a tipping point” from higher energy costs, Dimon said. “It just may be further out.”

— Hugh Son

JPMorgan CFO Jeremy Barnum said in a call with reporters that the consumer is the consumer is “maybe slightly better this quarter.”

“Tax refunds have been supportive, and in the end, it’s all about the labor market, and the labor market remains quite resilient,” he said. “So, it’s not a dramatic shift, but at the margin, I would say the consumer is a little bit stronger this quarter.”

— Ritika Shah

Citigroup reported return on tangible common equity at 13%, down just slightly from 13.1% last quarter. Fixed income markets revenue came in at $4.7 billion, up 7% and just above StreetAccount estimates of $4.67 billion.

The bank also reported revenues in its equity markets division of $2.3 billion, a 45% increase. That topped StreetAccount estimates of $1.81 billion.

– Laya Neelakandan

Citigroup reported net income of $5.8 billion, up from just $4 billion in the year-ago period. The bank said that growth was driven largely by higher revenue and a lower provision for credit losses, which came in at $2.5 billion, compared with StreetAccount estimates of $2.72 billion.

The bank added that its net income growth was partially offset by higher expenses.

– Laya Neelakandan

Reporters and investors have now turned to the JPMorgan media call, where CEO Jamie Dimon and CFO Jeremy Barnum take questions about the quarter.

— Hugh Son

Wells Fargo CFO Mike Santomassimo said consumer trends have been very resilient despite volatility with oil prices.

“If inflation ends up being much higher than people expect, or rates end up having to go much higher than people expect, driven by whatever reason, including the impacts of oil, then I think that will have some kind of impact on on consumers and the overall economy,” he said in a call with reporters “But we just haven’t seen that start to materialize yet.”

— Ritika Shah

Citigroup reported its best quarterly revenue in a decade today, with double-digit revenue growth for the company and in four out of its five businesses.

“Our growing earnings generation will allow us to increase our planned dividend by 12% and we have launched our $30 billion buyback plan,” CEO Jane Fraser said in a statement. “The combination of our investments, disciplined execution and focus on clients is improving our returns and creating more durable results for our investors.”

– Laya Neelakandan

One of the only areas of weakness for Goldman was its Platform Solutions division, where revenue fell 64% to $221 million, slightly below the $246.9 million estimate.

Goldman cited markdowns tied to the bank’s Apple Card loan portfolio, a business the firm is selling to JPMorgan Chase after years of difficulties.

— Hugh Son

Citigroup just reported its second-quarter earnings.

Here’s what the company reported, compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: $3.15 vs. $2.74 expected
• Revenue: $24.77 billion vs. $23.74 billion expected

— Michele Luhn

Taking a step back, Goldman Sachs benefited from nearly every aspect of the Wall Street recovery: Equities trading was the standout, but the return of IPOs, a healthy level of M&A activity, and the rise in value of their private equity holdings all contributed.

Goldman shares are up about 1.9% in premarket trading.

— Hugh Son

BofA CFO Alastair  Borthwick told reporters that the bank remains encouraged by the near-term outlook even as geopolitical tensions cause some instability in the broader market.

“Consumers remain resilient,” he said. “Always, the biggest risk is what’s going on with the economy, and right now the biggest driver, consumer, is doing really well.”

— Laya Neelakandan

This quarter saw some of the biggest gains ever for investment banking fees:

Goldman Sachs: up 55% to $3.4 billion
JPMorgan: up 30% to $3.3 billion
BofA: up 50% to $2.1 billion

But there’s a question as to whether this momentum can continue. Goldman said its backlog has increased relative to last quarter and last year. But the conference calls should yield more details about the pipelines.

—  Leslie Picker

Goldman’s investment banking fees jumped 55% from the year earlier to $3.4 billion, or about $610 million higher than the estimate.

They cite strength in equity underwriting, thanks to IPOs and secondary offerings, as well as debt issuance.

Revenues from advising on mergers also rose, and crucially, the deals backlog increased from this year’s first quarter, which is a good sign for the back half of the year.

— Hugh Son

BofA CFO Alastair Borthwick said the bank saw positive signs overall from its investment portfolios.

“Consumers also grew average deposits and loans, while asset quality remained healthy and in line with our expectations,” Borthwick said on a call with reporters.

He added that consumer investment assets rose nearly 20% from last year.

— Laya Neelakandan

On a call with reporters, Bank of America CFO Alastair Borthwick said the bank saw “broad-based” strength in its performance during the quarter.

“Our strategy is working, and we are making disciplined investments, growing organically, gaining market share, maintaining strong operating metrics and driving higher levels of growth and profitability,” he said.

— Laya Neelakandan

A big source of Goldman’s beat this quarter was in trading, as expected.

Like its rival JPMorgan, equities trading was much stronger than expected, surging 72% to $7.42 billion. That is about $2.3 billion more than the estimate.

Fixed income jumped 32% to $4.59 billion, or about $880 million more than expected. Analysts were keen to see how Goldman’s fixed income traders would do after a disappointing first quarter.

— Hugh Son

JPMorgan’s expense outlook continues its upward move.

Today, the firm said it would be $107.5 billion.

That’s up from the $106 billion that Chairman and CEO Jamie Dimon guided in May, which was up from the $105 billion outlook the company shared during its April earnings report.

And that April guidance was above the $101 billion analysts had been expecting toward the end of last year, before the company updated it at a conference in December.

– Leslie Picker

Goldman Sachs just reported its second-quarter earnings.

Here’s what the company reported, compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: $20.98 vs. $14.48 expected
• Revenue: $20.34 billion vs. $16.13 billion expected

— Michele Luhn

The positive outlook here from Wells Fargo CEO Charlie Scharf is notable, with the overall environment being strong, leading to growth across operations.

“We are clearly benefitting from the broad-based economic strength we see in the U.S.,” he said.

He also mentions the lifting of the asset cap the bank was under, a legacy of its regulatory woes under previous leadership, including the fake accounts scandal.

— Hugh Son

Bank of America reported provision for credit losses of $1.4 billion, down from $1.6 billion in the second quarter of last year but relatively flat compared to last quarter’s report of $1.3 billion.

Analysts had expected $1.47 billion in provision for credit losses, according to StreetAccount.

– Laya Neelakandan

Bank of America CEO Brian Moynihan said it was a strong quater.

“The team delivered one of our strongest quarters to date, with earnings per share up 34% year-over-year. Every business segment reported double digit net income growth and strong returns on equity,” he said in a statement. “Against a healthy economic backdrop, resilient consumers and businesses are turning to Bank of America to spend, borrow and invest.”

– Laya Neelakandan

Bank of America reported a 15% increase in revenue, net of interest expense, reaching roughly $31.7 billion. The bank said that growth was largely driven by net interest income and investment banking fees, which came in at $2.1 billion, up a significant 50% from the year-ago period.

Analysts had been expecting investment banking fees of just $1.86 billion, according to StreetAccount.

– Laya Neelakandan

JPMorgan Chase CEO Jamie Dimon said the U.S. economy has been strong so far in 2026.

“The U.S. economy has demonstrated notable resiliency this year, with stronger business investment and hiring,” he said in a statement released with earnings. “This strength is being supported by several tailwinds, including AI-driven capital investment, fiscal stimulus and the benefits of more efficient regulation.”

– Leslie Picker

JPMorgan shares are down about 2% in premarket trading. This type of volatility is typical ahead of the earnings call.

The bank is set to hold a conference call with analysts at 8:30 a.m. ET.

— Hugh Son

Bank of America reported net interest income of $16.2 billion, up 9%, driven by global markets activity and higher loan and deposit balances.

That was just about in line with StreetAccount consensus expectations of $16.23 billion.

– Laya Neelakandan

Looking at the JPM line items: The bank reported a massive beat in equities trading, with revenue up 86% to $6 billion, or $2.11 billion more than analysts had expected.

It also saw a slight miss in fixed income, which was up 6% to $6.1 billion, just below the $6.22 billion StreetAccount estimate.

The culprit there? Lower revenue in commodities (was it oil?).

– Hugh Son

JPMorgan CEO Jamie Dimon calls out an unusual stat: Every major business posted record revenue last quarter.

“Performance was strong across the Firm, and revenue in each line of business hit a new record,” Dimon says.

— Hugh Son

Bank of America just reported its second-quarter earnings.

Here’s what the company reported, compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: $1.21 vs. $1.13 expected
• Revenue: $31.7 billion vs. $30.72 billion expected

— Michele Luhn

JPMorgan investment banking fees came in at $3.3 billion, up 30% year over year and beating consensus of $2.82 billion.

The stat was about half a billion dollars more than the estimate.

JPMorgan calls out “particularly strong performance” in equity underwriting fees, which sounds like the impact of the SpaceX IPO.

— Leslie Picker and Hugh Son

The sense was that JPMorgan was going to beat, but this is something else.

JPMorgan earnings jumped 41% to $21.2 billion, though that’s a much more modest 13% when backing out two big one-timers related to $5.6 billion in gains on Visa and other items.

Shares aren’t moving that much on the news, up less than 1%.

— Hugh Son

JPMorgan Chase just reported its second-quarter earnings.

Here’s what the company reported, compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: $6.14 per share, excluding significant items. It wasn’t clear if that was comparable to the $5.85 expected
• Revenue: $58.02 billion vs. $50.19 billion expected

— Michele Luhn

— Clarification: This post has been updated to reflect that it wasn’t immediately clear if the EPS could be compared to estimates.

Wells Fargo just reported its second-quarter earnings.

Here’s what the company reported, compared with what Wall Street analysts surveyed by LSEG were expecting:

• Earnings per share: $2.00 vs. $1.72 expected
• Revenue: $22.62 billion vs. $21.84 billion expected

— Michele Luhn

One thing analysts will likely ask bank CEOs about is the impact of the return to fighting in the Iran-U.S. conflict.

So far, banks are expected to have benefited from elevated trading revenue thanks to volatility caused by the Iran war, but they have largely avoided the drag of higher consumer defaults or penny pinching caused by higher fuel and food prices.

That could change if the conflict continues and the Strait of Hormuz, a key passage for a chunk of the world’s fuel and fertilizer, becomes impassable. Higher inflation would hit consumers and also increase the odds the Federal Reserve will have to raise interest rates.

“If there’s a surprise on inflation, or oil rises to $130 or $140 a barrel, that’s a real stress on the consumer,” said KBW analyst Chris McGratty.

— Hugh Son

According to estimates from StreetAccount, Citigroup is expected to report $4.67 billion in revenue in its fixed income division. Last quarter, that division was one of the largest drivers of its first-quarter beat.

The bank is also expected to report $1.81 billion in revenue in equity markets and $1.78 billion in revenue in banking overall.

Wall Street is expecting Citi to report $2.32 billion in net credit losses, according to StreetAccount.

— Laya Neelakandan

Citi has historically surpassed expectations.

According to StreetAccount, Citi’s revenue and earnings per share have both beaten the consensus estimates in 18 of the past 20 quarters.

— Laya Neelakandan

Citigroup is set to report its second-quarter earnings results before the bell on Tuesday. Here’s what the bank is expected to post, based on a survey of analysts by LSEG:

• Earnings per share: $2.74 expected
• Revenue: $23.74 billion expected

Company executives are scheduled to hold a call with analysts to discuss results at 11 a.m. ET.

— Laya Neelakandan

Buoyed by the SpaceX IPO and other deals, investment bankers are expected to have closed the books on a great quarter last month.

But Wall Street’s risk-taking traders are also expected to have done well in the period as geopolitical unrest including the Iran war stoked volatility across asset classes.

Investment banking revenue for the group could surge 26% from a year ago, while trading revenue could jump 14%, according to KBW analyst Chris McGratty.

Gains in trading are expected to come from equities desks as stock markets climbed in the second quarter, and fixed income traders may have benefited from volatility in oil, currencies and interest rates.

JPMorgan, for instance, is expected to post $10.1 billion in second-quarter trading revenue. If it manages to top the $11.6 billion it made earlier this year, that would mark a record.

It’s the latest evidence that banks are doing a better job of managing risk than in the years before the 2008 financial crisis, when firms would periodically report large trading losses.

“Banks are doing a good job these days of capturing the upside of volatility,” McGratty said.

Read the full story here.

— Hugh Son

Goldman Sachs, led by CEO David Solomon, is expected to be one of the big beneficiaries of boom times for both investment bankers and traders.

Here’s what Wall Street expects:

• Earnings per share: $14.48, according to LSEG
• Revenue: $16.13 billion, according to LSEG
• Trading revenue: fixed income of $3.71 billion, equities of $5.11 billion, according to StreetAccount
• Investing banking fees: $2.79 billion, according to StreetAccount

Company executives will hold a conference call with analysts at 9:30 a.m. ET.

— Hugh Son

Investment bankers were paid $500 million for the privilege of taking SpaceX public last month, with leads Goldman Sachs and Morgan Stanley getting the biggest shares at about $100 million each.

But that’s just part of the bonanza in fees from the largest IPO in history.

There was also the investment grade debt offering that many of the same banks handled days after the IPO, and the possibility of managing the wealth of newly minted millionaires and billionaires.

On top of that, Goldman and Morgan Stanley likely reaped so-called soft dollars from the SpaceX initial public offering, according to Jay Ritter, professor emeritus of finance at the University of Florida’s Warrington College of Business.

That’s a term for fees, paid in the form of trading or research commissions, that hedge funds give investment banks for a slice of an oversubscribed IPO, Ritter said.

Still, while executives will almost certainly speak to the pipeline of future deals they expect the rest of the year, Wells Fargo analyst Mike Mayo doesn’t expect a lot of detail on just how much revenue came from SpaceX.

“I don’t expect any granularity around any one specific IPO,” Mayo told CNBC.

Read the full story here.

— Hugh Son

Bank of America is expected to report revenue in its investment banking division of $1.86 billion, according to StreetAccount.

Analysts are also expecting the bank to report equities trading reaching $2.77 billion. Net interest income, which is the metric for making loans, is projected to come in at $16.23 billion, according to StreetAccount.

— Laya Neelakandan

Bank of America is set to report its second-quarter earnings results before the bell Tuesday. Here’s what the company is expected to post, based on a survey of analysts by LSEG:

• Earnings per share: $1.13 expected
• Revenue: $30.72 billion expected

Company executives will hold a conference call with analysts at 8:30 a.m. ET.

— Laya Neelakandan

Wells Fargo, led by CEO Charlie Scharf, is scheduled to report second-quarter earnings before the opening bell Tuesday.

Analysts are looking for signs of business momentum after the Federal Reserve lifted a balance sheet restriction on the bank last year.

Here’s what Wall Street expects:

• Earnings per share: $1.72, according to LSEG
• Revenue: $21.84 billion, according to LSEG
• Net interest income: $12.39 billion, according to StreetAccount
• Provision for credit losses: $1.2 billion, according to StreetAccount

Company executives will hold a conference call with analysts at 10 a.m. ET.

— Hugh Son

This will be the first chance that analysts have to directly ask JPMorgan CEO Jamie Dimon questions about succession planning after the sudden exit of Marianne Lake, who had been considered a top candidate.

As CNBC and others reported last month, Dimon expects to remain CEO for roughly three more years, though that timeline could change, according to two people with knowledge of his thinking. After that, he’ll spend some time as chairman.

Since Dimon has spent more than a decade saying that retirement was five years away, analysts will want to quiz him on how he’s thinking about the issue.

Meanwhile, Doug Petno and Troy Rohrbaugh, who have jointly led the bank’s commercial and investment banking division since early 2024, are now the top contenders to succeed Dimon.

They were made co-presidents and were each awarded $30 million retention bonuses last month.

— Hugh Son

JPMorgan Chase is scheduled to report second-quarter earnings before the opening bell Tuesday.

JPMorgan, led by longtime CEO Jamie Dimon, is the biggest U.S. bank by assets and the largest in the world by market capitalization.

Here’s what Wall Street expects:

• Earnings per share: $5.85 according to LSEG
• Revenue: $50.19 billion, according to LSEG
• Investment banking fees: $2.82 billion, according to StreetAccount
• Trading revenue: Fixed income of $6.22 billion, equities of $3.89 billion, according to StreetAccount

Company executives will hold a conference call with analysts at 8:30 a.m. ET.

— Hugh Son

For more than four decades, Portales Partners analyst Charles Peabody has covered bank earnings.

In all that time, there’s never been a bank earnings day as crowded as today, he said.

Oftentimes, JPMorgan, Citigroup and Wells Fargo will report on the first day of earnings week, followed by Bank of America, Goldman Sachs and Morgan Stanley on subsequent days, he said.

His theory: banks are rushing to disclose robust earnings.

“It’s never happened before,” Peabody told CNBC. “You’re assuming there’s going to be really good news out of those banks” that pushed their earnings dates ahead.

Still, it doesn’t make the job of covering banks any easier.

“You’re not going to get a lot of deep analysis on Day 1,” Peabody said. “We’ll need more time.”

— Hugh Son