Major U.S. banks reported stronger-than-expected Q1 2025 earnings, largely driven by increased trading activity amid market volatility. While net interest income varied across institutions overall performance was solid. JPMorgan Chase, Bank of America, Citigroup, Bank of New York Mellon and Goldman Sachs all exceeded earnings forecasts though revenue results were mixed. CEOs flagged ongoing economic uncertainty, particularly from rising geopolitical tensions and potential tariffs under the Trump administration.

Concerns over new tariffs dominated executive commentary, with JPMorgan, Wells Fargo, and Citigroup highlighting risks to economic growth, deal-making, and consumer spending. Analysts at Morgan Stanley downgraded the banking sector, predicting weaker revenue outlooks and no Fed rate cuts due to tariff-related inflation. Investor sentiment reflected these worries, as seen in a notable decline in the KBW Bank Index.

Other highlights include AmEx outperforming peers due to its premium customer base and lower delinquencies. Staffing remained stable in Q1, but banks are preparing for potential disruptions and slower M&A and IPO activity later in the year.

Here’s the Take on some recent bank earnings and the impact of potential tariffs:

Overall Q1 2025 Earnings

Several major U.S. banks, including Bank of America, JPMorgan Chase, Citigroup, and Bank of New York Mellon, reported first-quarter earnings that beat analysts' expectations.

These positive results were often driven by strong trading revenues due to volatile markets and increased client activity. Net interest income (NII) showed varied performance, with some banks reporting increases and others seeing declines or stable figures.

Individual Bank Highlights

Bank of America (BAC):

• Shares surged after reporting better-than-expected EPS of $0.90 and revenue of $27.37 billion.

• Net interest income was $14.44 billion, in line with consensus.

• CEO Brian Moynihan noted client resilience but acknowledged potential future economic changes.

JPMorgan Chase (JPM):

• Exceeded expectations with EPS of $5.07 and revenue of $45.31 billion.

• CEO Jamie Dimon highlighted a rise in investment banking fees but expressed caution about "considerable turbulence" in the economy due to geopolitical and trade tensions, including tariffs.

Wells Fargo (WFC):

• Earnings per share of $1.39 beat forecasts, but revenue of $20.15 billion missed expectations.

• CEO Charlie Scharf acknowledged risks associated with the administration's trade policies and anticipates continued volatility and a potentially slower economic environment.

Citigroup (C.N):

• Beat profit estimates, driven by strong trading revenues.

• The turnaround is working.

• Executives also warned about the shadow of U.S. tariff policies on the economic outlook.

Bank of New York Mellon (BK):

• Earnings and revenue both exceeded expectations.

• CEO Robin Vince stated the bank is prepared for a wide range of macroeconomic and market scenarios amid increasing uncertainty.

BlackRock (BLK):

• Adjusted earnings per share beat estimates, but revenue slightly missed.

• CEO Larry Fink noted "uncertainty and anxiety" dominating client conversations.

Goldman Sachs (GS):

• Reported strong first-quarter earnings with EPS of $14.12 and revenue of $15.06 billion, exceeding expectations.

• Morgan Stanley analysts downgraded Goldman Sachs to "equal weight" due to its sensitivity to investment banking revenues in a potentially recessionary environment influenced by tariffs.