- Five of the biggest U.S. banks reported record profits on Tuesday, boosted by their trading desks and a resilient American consumer, the Associated Press reported.
- Both consumer-facing and market-focused banks posted revenue and profit growth that exceeded the most optimistic Wall Street expectations.
- The results mark the second consecutive quarter of outsized profits since the Iran war began in late February.
- The KBW Nasdaq Bank Index rose 0.7% in afternoon trading following the earnings releases.
Second straight quarter of strong results since Iran war began
Five of the biggest U.S. banks reported record profits on Tuesday, driven by a surge in trading activity tied to market volatility from the ongoing war in Iran and by resilient consumer spending, according to the Associated Press.
The latest figures extend a pattern that has held since the conflict began in February: market volatility has driven volume on bank trading desks while households have maintained spending levels, boosting consumer-lending revenue. Consumer-facing and market-focused banks alike reported revenue and profit growth that beat even the most optimistic analyst forecasts, the AP reported.
The KBW Nasdaq Bank Index rose 0.7% in Tuesday afternoon trading.