Banking sector: Results at major US banks — Overview of Jul–Sep 2026 results at major US banks

The report reviews Jul–Sep 2026 results at the six major US banks. Aggregate profits attributable to common shareholders rose 7% y-y to $42.0bn, though slowed q-q. Trading income rose 16% y-y but fell 17% q-q, with FICC somewhat weak on rapid rate moves while equities, especially Asian equities, continued to drive performance. Investment banking income rose 9% y-y and fell 10% q-q, helped by a 15% y-y increase in M&A advisory fees. Net interest income rose 11% y-y on higher rates and volumes. Management teams described lending and IB pipelines as strong, while noting that higher rates had caused some clients to rein in activity. Earnings calls focused on AI investment opportunities and threats, the impact of rising rates, and liquidity regulation; banks suggested that strong liquidity rules amid ample capital could skew marginal allocations toward high-risk-density assets. The report also draws implications for Japan's banking industry.