The new earnings season has kicked off, with banks, as always, leading the wave of announcements.
Earnings season is always a unique opportunity to take the pulse of the market. And there is no better indicator to start with than the major banks. They set the tone for the rest of Wall Street and often show us what to expect in terms of the economy and investor psychology.
JPMORGAN
We start with the “queen” of banks, JPMorgan.
So let’s see what it reported.
In the fourth quarter of 2025, JPMorgan posted adjusted earnings per share of 5.23 dollars, above expectations, while revenues came in at 46.8 billion dollars. Net interest income reached 25 billion dollars, slightly above forecasts, supported both by margin expansion and loan growth.
Was this a perfect 10 out of 10 performance? Not exactly. Provisions for credit losses increased significantly, reaching 4.66 billion dollars, higher than the market expected. In addition, investment banking revenues declined 5 percent year over year, which disappointed investors. This drop shows that corporate deal activity has not yet returned to full speed.
That said, every division performed well. Asset and wealth management saw assets grow by 18 percent, while market revenues, especially equities, surged 40 percent year over year. This highlights strong investor activity and high confidence in JPMorgan’s trading desk. And yet, the stock fell 4 percent after the announcement.
Why? As Steven Chubak of Wolfe Research noted, results were mainly boosted by better cost control, while the 2026 guidance offered no positive surprises. Net interest income of 95 billion dollars excluding markets, expenses of 105 billion dollars, and credit card defaults around 3.4 percent.
This is the key point. JPMorgan is stable and massive, but it is also a cyclical stock. Its performance depends on where we are in the economic cycle. When conditions are strong, it delivers impressive returns. When the market enters a slowdown phase, pressure starts to build.
BANK OF AMERICA
Here we saw clean and steady results. Earnings per share of 0.98 dollars, slightly above expectations. Total revenues of 28.5 billion dollars, with net interest income at 15.9 billion dollars, also above consensus. Non interest income reached 12.6 billion dollars, again beating forecasts.
Bank of America also provided fairly strong guidance for 2026, with expected net interest income growth of 5 to 7 percent. This translates into a range of 63.7 to 65 billion dollars, up from 60.7 billion dollars in 2025. Management also expects operating leverage of around 200 basis points and a stable tax rate near 20 percent.
Wealth management also made solid progress, with client balances up 12 percent and net income of 1.41 billion dollars in the segment. The combination of a resilient consumer and continued flows into financial products creates a strong foundation for future earnings. As CEO Brian Moynihan said, consumers and businesses are proving more resilient than we feared.
GOLDMAN SACHS
Here we saw earnings per share of 14.01 dollars, an impressive result well above expectations. However, total revenues came in at 13.5 billion dollars, slightly below consensus. Why?
A massive write down of 2.26 billion dollars from the sale of the Apple Card business to JPMorgan. This was partly offset by a release of provisions totaling 2.48 billion dollars. So, from an accounting perspective, a bit taken away here and added back there, the final result still looked very strong.
MORGAN STANLEY
The “quiet force.” Earnings per share of 2.68 dollars, above expectations. Revenues of 17.9 billion dollars, with strength across all categories. Investment banking jumped 47 percent year over year, while wealth and investment management rose 13 percent and 5 percent respectively.
Assets under management reached 7.4 trillion dollars, with strong net inflows, and return on equity exceeded 21 percent. It is clear that Morgan Stanley’s strategy focuses on steady wealth creation for high net worth clients rather than sharp volatility. That is why it has built such a loyal following, especially during periods of uncertainty.
CREDIT CARD RATE CAP
As you may recall, Trump’s wants to impose a 10 percent cap on credit card interest rates. Following the earnings announcements, bank CEOs weighed in.
Jane Fraser of Citi said this would cut off access to credit for many and benefit only the wealthy.
Jamie Dimon of JPMorgan warned of a “dramatic reduction” in access to credit cards.
Brian Moynihan of Bank of America said such interventions restrict the supply of credit to those who need it most.
The common message from all of them: a rate cap would reduce accessibility, cut revenues, and ultimately push consumers toward more expensive and riskier alternatives.
