U.S. banks delivered mostly strong first-quarter results, buoyed by a surge in trading activity amid heightened market volatility. Equity and fixed income desks saw meaningful gains across the board, helping JPMorgan Chase & Co, Bank of America Corp, and Citigroup Inc all post better-than-expected earnings. Trading strength offset softer spots in investment banking, which remained challenged by cautious corporate activity in a still-uncertain macro backdrop. Net interest income remained a key earnings driver, although growth varied, with US Bancorp benefiting from disciplined expense control and margin expansion. Capital levels remained solid across the group, and shareholder returns through buybacks remained robust.

However, ongoing trade tensions and broader macroeconomic uncertainty—driven by policy shifts, geopolitical risks, and inflation—may weigh on dealmaking and credit demand in the quarters ahead. While banks are well-positioned, the sector could face pressure if economic conditions deteriorate, or policy volatility persists.

Top 5 Portfolio Holdings*

JPMorgan Chase & Co (JPM)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 6.93%

• EPS: $5.070 reported vs estimate of $4.613
• Revenue: $46.014B reported vs estimate of $44.394B

“The Firm reported strong underlying business and financial results in the first quarter, producing net income of $14.6 billion. In the CIB, Investment Banking fees rose 12% in the first quarter, although clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions. Meanwhile, we saw increased activity in the Markets business. Markets revenue rose to $9.7 billion, an exceptionally strong quarter with record revenue in Equities…” – Jamie Dimon, CEO.¹

JPMorgan Chase reported stronger-than-expected first-quarter results, driven by robust equity trading and higher revenues across key business lines. Profit rose 9% to $14.64 billion, with core earnings excluding a one-time gain still beating analyst forecasts. Revenue increased 8% to $46.01 billion, supported by strong performances in asset management, investment banking, and particularly equity trading, which jumped 48% year-over-year. CEO Jamie Dimon highlighted the firm’s solid quarter but struck a cautious tone on the broader economy, pointing to persistent inflation, geopolitical risks, and elevated asset prices as potential headwinds. While these uncertainties may dampen some investment banking activity, they also create opportunities for trading operations—a dynamic JPMorgan clearly benefited from this quarter. ²

Bank of America Corp (BAC)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 6.70%

• EPS: $0.900 reported vs estimate of $0.816
• Revenue: $27.511B reported vs estimate of $26.923B

“We had a good first quarter, with earnings per share of $0.90 up from $0.76 last year. This reflected growth in net interest income and fee income, while sales and trading delivered its 12th consecutive quarter of year-over-year revenue growth. Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality. Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team’s relentless focus on Responsible Growth will remain a source of strength.” – Brian Moynihan, CEO. ³

Bank of America delivered a strong first quarter, beating analyst expectations on both profit and revenue thanks to solid gains in net interest income and trading. Earnings rose 11% to $7.4 billion, surpassing estimates, while revenue climbed nearly 6% to $27.51 billion. Net interest income was a key driver, benefiting from lower deposit costs and higher-yielding investments. Trading revenue also impressed, with equities up 17% and fixed income up 5%. While investment banking fees dipped 3% amid broader market uncertainty, overall performance was resilient. CEO Brian Moynihan highlighted the strength of both business and consumer clients, emphasizing the bank’s preparedness for a potentially shifting economic landscape. ⁴

Wells Fargo & Co (WFC)

Portfolio weight* in Evolve US Banks Enhanced Yield: 6.66%

• EPS: $1.270 reported vs estimate of $1.235
• Revenue: $20.149B reported vs estimate of $20.734B

“We produced solid results with diluted earnings per share increasing 16% from a year ago reflecting fee-based revenue growth across many of our core businesses, continued expense discipline, improved credit results, and an 8% reduction in diluted common shares as we continued to return capital to shareholders…” – Charlie Scharf, CEO. ⁵

Wells Fargo posted mixed first-quarter results, with earnings beating expectations but revenue falling short. Adjusted EPS beat analyst expectations, while revenue declined 3% year-over-year, missing forecasts. Net interest income, a key driver of bank profits, fell 6% to $11.5 billion, reflecting pressure on lending margins. Noninterest income remained flat, and the bank set aside $932 million for potential credit losses. CEO Charlie Scharf flagged economic uncertainty tied to U.S. trade policy changes, warning of potential headwinds ahead. Despite the cautious tone, Wells Fargo returned $3.5 billion to shareholders through buybacks during the quarter. ⁶

Citigroup Inc (C)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 6.77%

• EPS: $1.960 reported vs estimate of $1.841
• Revenue: $21.600B reported vs estimate of $21.279B

“With net income of $4.1 billion we delivered a strong quarter, marked by continued momentum, positive operating leverage and improved returns in each of our five businesses. Services recorded its best first quarter revenue in a decade. Markets had a good first quarter with revenue up 12% driven by strong client activity and monetization. Banking was up 12% with M&A revenue nearly double from what it was last year. Wealth revenues increased 24% with progress across all three client segments. USPB was up 2%, driven mainly by growth in Branded Cards, and also saw improved returns. We returned $2.8 billion in capital to our shareholders including $1.75 billion of buybacks as part of our $20 billion plan.” – Jane Fraser, CEO. ⁷

Citigroup reported better-than-expected first-quarter earnings, driven by strong trading results and disciplined cost management. Profit rose 21% to $4.1 billion, beating estimates, while revenue climbed 3% to $21.6 billion. Trading desks were standout performers, with fixed income revenue rising 8% to $4.5 billion and equities revenue jumping 23% to $1.5 billion—both above forecasts—thanks to increased market volatility and active client engagement. CEO Jane Fraser emphasized the bank’s diversified model and long-term positioning, reaffirming confidence in the U.S. economy despite ongoing trade tensions. She noted that, despite structural shifts, the U.S. dollar would remain the world’s reserve currency. ⁸

US Bancorp (USB)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 6.60%

• EPS: $1.030 reported vs estimate of $0.974
• Revenue: $6.958B reported vs estimate of $6.912B

“In the first quarter we reported diluted earnings per share of $1.03 and delivered a return on tangible common equity of 17.5%. We managed expenses with discipline and delivered 270 basis points of positive operating leverage on an adjusted basis – our third consecutive quarter of year over-year growth in revenues outpacing expenses. Total net revenue of approximately $7.0 billion was supported by slight margin expansion and year over-year growth in fee revenue of 5%. Importantly, asset quality and capital levels are strong. This quarter, our net charge-off ratio improved modestly and common equity tier 1 capital ratio increased by 20 basis points to 10.8%. As we navigate macro economic uncertainties, we will continue to manage the bank with strong risk management capabilities…” – Gunjan Kedia, CEO. ⁹

US Bancorp reported solid first-quarter results, with net income of $1.71 billion and earnings per share of $1.03. Return on tangible common equity was a strong 17.5%, and return on average assets stood at 1.04%. The bank delivered positive operating leverage of 270 basis points year-over-year, reflecting disciplined expense management and revenue growth. Net revenue rose 3.6% to $6.96 billion, driven by a 2.7% increase in net interest income and a 5% rise in noninterest income. The net interest margin edged up to 2.72%, showing modest improvement both year-over-year and quarter-over-quarter. Expenses rose slightly—less than 1% year-over-year—while the CET1 capital ratio improved to 10.8%. Average total loans grew 2.1% from a year earlier, indicating stable credit demand. ¹⁰

 

*Portfolio weights as at March 31, 2025. Top holdings sorted by Market Cap.

 

DISCLAIMER

Published May 9, 2025.

Evolve Funds Group Inc. is the investment fund manager and portfolio manager. Evolve US Banks Enhanced Yield Fund is offered by Evolve Funds Group Inc., and distributed through authorized dealers.

The information contained herein is a general description and is not intended to be specific investment advice to any particular investor nor intended to be investment or tax advice. You should not act or rely on the information contained herein without seeking the advice of an appropriate professional advisor. The information contained herein is intended for informational purposes as a summary only, does not constitute an offer to sell any securities or a legally binding obligation, it is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses found on the Evolve Funds Group Inc website at https://evolveetfs.com/

Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds. Please read the prospectus before investing. ETFs and mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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Certain information contained in this document is obtained from third parties. Evolve Funds Group Inc. believes such information to be accurate and reliable as of the date hereof, however, we cannot guarantee that it is accurate or complete or current at all times. The information provided is subject to change without notice.

Sources:

1. JP Morgan Q1 2025 Earnings Press Release (April 11, 2025)
2. https://www.cnbc.com/2025/04/11/jpmorgan-chase-jpm-earnings-q1-2025.html (April 11, 2025)
3. Bank of America Q1 2025 Earnings Press Release (April 15, 2025)
4. https://www.cnbc.com/2025/04/15/bank-of-america-bac-earnings-q1-2025.html (April 15, 2025)
5. Wells Fargo Q1 2025 Earnings Press Release (April 11, 2025)
6. https://www.cnbc.com/2025/04/11/wells-fargo-wfc-earnings-q1-2025.html (April 11, 2025)
7. Citigroup Q1 2025 Earnings Press Release (April 15, 2025)
8. https://www.cnbc.com/2025/04/15/citigroup-c-earnings-q1-2025.html (April 15, 2025)
9. US Bancorp Q1 2025 Earnings Press Release (April 16, 2025)
10. US Bancorp Q1 2025 Earnings Press Release (April 16, 2025)

 

Source: Getty Images Credit: Javier Ghersi