The latest earnings reports were released Wednesday from a trio of major banks — Bank of America, Citigroup, and Wells Fargo. Although each bank offers different banking services, the common theme is clear: profits are rising, deal-making is robust, and consumers are managing well.
“While various risks persist, we remain optimistic about the U.S. economy in 2026,” stated Brian Moynihan, CEO and chairman of Bank of America.
Moynihan remarked that both businesses and consumers are demonstrating resilience. Mark Mason, the chief financial officer of Citigroup, echoed this sentiment by describing the current state of consumers and businesses as resilient.
“The U.S. economy is holding up well. There are risks, particularly geopolitical concerns. However, when I take a comprehensive look, it’s evident that our economy has navigated uncertainty effectively,” Mason informed reporters on Wednesday.
Until recently, the major banks had a supportive ally in the White House under President Donald Trump. In July, Trump enacted the One Big Beautiful Bill, which introduced another significant round of tax cuts. Additionally, his appointed bank regulators have been endorsing a deregulatory approach that has been welcomed by both banks and large corporations. Last year saw many companies engaging in deal-making, contributing to a steady influx of investment banking revenues and fees for the large banks.
However, relations have soured as Trump and the banks are now at odds. On Friday, Trump expressed his desire to impose a cap on credit card interest rates at 10%, and he has shown backing for his Justice Department’s investigation into Jerome Powell, the chair of the Federal Reserve—an inquiry that bankers view as a threat to the independence of the central bank. Trump has not wavered in his stance, reinforcing his comments to reporters on Tuesday night.
For these major banks, which have substantial and profitable credit card divisions, the argument is that a cap on credit card interest rates is simply unfeasible.
“Affordability is a significant concern, and we welcome the chance to work with the administration on this issue,” Mason of Citi commented. “However, we do not support an interest rate cap. It would limit credit availability for those who need it most and could have detrimental effects on the economy.”
Bank executives told reporters that they had not observed much evidence of a “K-Shaped” economy, where the wealthy continue to prosper while the lower half struggles. Moreover, consumer spending remains strong, and other indicators of consumer financial health, such as delinquencies and charge-offs, are stable.
Bank of America reported a profit of $7.6 billion, or 98 cents per share, an increase from $6.8 billion, or 83 cents per share, from the same period a year ago. The bank’s revenue reached $28.4 billion.
Wells Fargo reported a profit of $5.36 billion, or $1.62 per share, compared to a profit of $5.08 billion, or $1.43 per share, in the same period last year, with revenues at $21.3 billion.
At Bank of America, the bank noted a 6% increase in credit and debit card spending, with credit card balances rising by a manageable 3% year-over-year to $103 billion. Retail deposits grew to $945.4 billion.
Wells Fargo’s credit metrics painted a similar picture, showing consumer loan growth and increased activity on its credit cards, while delinquencies and charge-offs remained stable.
