Q2 earnings from major U.S. banks reflected strong trading performance, resilient consumers, and growing momentum in tech-driven financial services—though cautious outlooks on interest income persist. JPMorgan Chase led with robust trading and investment banking gains, while Citigroup delivered standout growth across core divisions, especially markets and banking. Bank of America showed steady credit and deposit strength but missed on revenue. Wells Fargo beat earnings yet trimmed its net interest income guidance, despite gaining new growth freedom with the Fed lifting its asset cap. Meanwhile, U.S. Bancorp combined solid financial results with meaningful progress in digital innovation—from blockchain-based trade finance to expanded embedded payments—signaling a broader trend toward tech-integrated banking. Collectively, these reports underscore a shift: traditional revenue drivers like lending are plateauing, while trading, advisory, and fintech capabilities are taking center stage.

Top 5 Portfolio Holdings*

JPMorgan Chase & Co (JPM)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 7.48%

• EPS: $4.960 reported vs Bloomberg estimate of $4.474
• Revenue: $45.680B reported vs Bloomberg estimate of $44.053B

“We reported another quarter of strong results, generating net income of $15.0 billion or net income of $14.2 billion excluding a significant item…” – Jamie Dimon, CEO¹

JPMorgan Chase beat Q2 expectations as strong trading and investment banking performance offset tough year-ago comparisons. Earnings fell 17% to $5.24 per share, skewed by last year’s $7.9B Visa gain, but still topped forecasts thanks to trading strength and a favorable tax benefit. Revenue dipped 10% to $45.68B but came in ahead of estimates. CEO Jamie Dimon highlighted the bank’s resilience, its ability to boost dividends and buybacks, and noted solid market gains amid Trump-era trade turbulence. Fixed income trading jumped 14%, equities rose 15%, and investment banking fees climbed 7% as activity rebounded late in the quarter. JPMorgan also improved guidance for full-year net interest income, a key profitability metric. While Dimon cautioned on risks like trade uncertainty and fiscal deficits, the bank’s strong capital position and market-savvy execution have helped drive a strong year-to-date stock gain.²

Bank of America Corp (BAC)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 6.96%

• EPS: $0.890 reported vs Bloomberg estimate of $0.850
• Revenue: $26.608B reported vs Bloomberg estimate of $26.674B

“We delivered another solid quarter, with earnings per share up seven percent from last year. Net interest income grew for the fourth straight quarter, reflecting eight consecutive quarters of deposit growth and seven percent year-over-year loan growth. Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose…” – Brian Moynihan, CEO³

Bank of America delivered mixed Q2 results, beating earnings estimates but falling short on revenue—making it the only major U.S. bank to miss on that front. Profit rose 3% to $7.12B, or 89 cents per share, edging past expectations. Revenue increased 4% to $26.61B, slightly below forecasts, with net interest income up 7% to $14.82B but missing estimates by $70M as lower rates offset growth in deposits and loans. CEO Brian Moynihan highlighted steady consumer health, rising commercial utilization, and momentum across markets businesses. Fixed income trading outperformed with $3.25B in revenue, while equities trading narrowly missed. Investment banking fees fell 9% but still came in stronger than expected at $1.4B.⁴

Wells Fargo & Co (WFC)

Portfolio weight* in Evolve US Banks Enhanced Yield: 6.75%

• EPS: $1.600 reported vs Bloomberg estimate of $1.412
• Revenue: $20.822B reported vs Bloomberg estimate of $20.749B

“Our second quarter results reflect the progress we are making to consistently produce stronger financial results with net income and diluted earnings per share up from both the first quarter and a year ago. Our efforts to increase fee-based income drove revenue growth and both net interest income and noninterest income grew from the first quarter. We are investing in our businesses but remain focused on expense management. While there continue to be risks as we look forward, activity levels have remained consistent and our strong credit performance continues to point to the strength of our commercial and consumer customers’ financial position…” – Charlie Scharf, CEO⁵

Wells Fargo beat Q2 profit expectations but cut its 2025 net interest income (NII) outlook, triggering a drop in its stock. The bank now expects NII to remain flat versus 2024’s $47.7B, down from earlier guidance of up to 3% growth, citing weakness in its markets division. While analysts had anticipated a guidance cut amid sluggish loan demand and high rates, Wells Fargo noted the impact would be largely offset by stronger non-interest income. Q2 profit rose to $5.49B ($1.60/share), with adjusted earnings of $1.54 topping the $1.41 forecast. Credit provisions eased, and investment banking fees rose 9% to $696M. Importantly, the Fed lifted the bank’s long-standing $1.95T asset cap last month, marking a turning point after years of regulatory constraints. CEO Charlie Scharf emphasized that the bank is now positioned to grow more aggressively, especially in wholesale banking, though expansion will be measured.⁶

Citigroup Inc (C)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 7.35%

• EPS: $2.123 reported vs Bloomberg estimate of $1.603
• Revenue: $21.668B reported vs Bloomberg estimate of $20.958B

“We reported another very good quarter and continue to demonstrate that our strong results are sustainable through different environments. We’re improving the performance of each of our businesses to take share and drive higher returns. With revenue up 8%, Services continues to show why this high-return business is our crown jewel. Markets had its best second quarter performance since 2020 with a record second quarter for Equities. Banking revenues were up 18% and we continue to be at the center of some of the most significant transactions…” – Jane Fraser, CEO⁷

Citigroup delivered a strong Q2, beating expectations with strong earnings and revenue, sending its stock up sharply. Net income rose 25% to $4.02B, with broad-based growth across the bank’s core businesses. Markets revenue surged 16%, driven by record Q2 performance in equities, while banking revenue jumped 18% despite loan hedge losses. CEO Jane Fraser called the bank’s high-return Services division its “crown jewel” and said Citi is gaining share by improving performance across all units. Volatile markets boosted trading results, and Citi expects continued benefit from global uncertainty. However, credit costs climbed 16% due to a weaker economic outlook and higher reserves. The bank maintained a cautious tone on hiring and capex trends but raised full-year revenue guidance to $84B, the top end of its prior range. Citi also hiked its dividend and hinted at exploring stablecoins, as its stock continues to outperform peers.⁸

US Bancorp (USB)

Portfolio weight* in Evolve US Banks Enhanced Yield Fund: 6.46%

• EPS: $1.110 reported vs Bloomberg estimate of $1.062
• Revenue: $7.004B reported vs Bloomberg estimate of $7.053B

“…As we look ahead, we remain committed to executing on our strategic priorities and making disciplined progress towards achieving our medium-term financial targets. Our diversified business mix and sound risk management culture remain strengths, especially at a time of economic volatility…” – Gunjan Kedia, CEO ⁹

U.S. Bancorp posted a strong Q2, with net income up 13% to $1.82B and EPS rising to $1.11 from $0.97 last year. Revenue grew 2% to $7B, driven by a 4.6% increase in fee income, while expenses declined slightly and operating leverage improved. The bank delivered an 18% return on tangible common equity and maintained solid loan growth, with total average loans (including held-for-sale) up 1.7% year-over-year. U.S. Bank also advanced its digital strategy, completing its first fully digital trade finance transaction using blockchain to cut processing time from days to minutes. Elavon, its merchant payments arm, jumped to the fifth-largest U.S. merchant acquirer in the Nilson Report, handling over $576B annually. Additional fintech initiatives included a partnership with Fiserv to unify debit and credit card management, and the expansion of embedded payment solutions, reinforcing U.S. Bank’s focus on innovation and integrated financial services. ⁹

*Portfolio weights as at June 30, 2025. Top holdings sorted by Market Cap.

 

DISCLAIMER

Published July 25, 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/

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Source: Getty Images Credit: Javier Ghersi

Sources:

1. https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2025/2nd-quarter/ac5b7d95-9133-4fea-959c-2fa6d8fd8c5b.pdf (July 15, 2025)
2. https://www.cnbc.com/2025/07/15/jpmorgan-chase-jpm-earnings-q2-2025.html (July 15, 2025)
3. https://d1io3yog0oux5.cloudfront.net/_285374943558368fd722d0234cd17a94/bankofamerica/db/806/10214/earnings_release/The+Press+Release_2Q25_ADA.pdf (July 16, 2025)
4. https://www.cnbc.com/2025/07/16/bank-of-america-bac-earnings-q2-2025.html (July 16, 2025)
5. https://www.wellsfargo.com/assets/pdf/about/investor-relations/earnings/second-quarter-2025-earnings.pdf (July 15, 2025)
6. https://www.cnbc.com/2025/07/15/wells-fargo-wfc-q2-earnings.html (July 15, 2025)
7. https://www.citigroup.com/rcs/citigpa/storage/public/2025prqtr2rslt.pdf (July 15, 2025)
8. https://www.cnbc.com/2025/07/15/citigroup-c-earnings-q2-2025.html (July 15, 2025)
9. https://s203.q4cdn.com/711684571/files/doc_financials/2025/q2/2Q25-Earnings-Release.pdf (July 17, 2025)