U.S. Bank Stocks Ahead of Earnings Release: Time to Buy or Take Profit?

Major U.S. banks will begin releasing their second-quarter earnings reports for this year starting July 14, 2026 (local time). This earnings season is expected to be driven by investment banking and equities trading divisions. Thanks to capital market activation, Wall Street-centered investment banking divisions are projected to post strong performances. As financial market volatility increased during the second quarter, trading desk revenue surged. With the M&A and IPO markets showing vigor, advisory fees increased significantly. Jamie Dimon, CEO of JPMorgan Chase, referenced the busy activity of companies and investors at an event in late May 2026.

On the other hand, pressure for a slowdown in the real economy is intensifying due to prolonged high inflation and high interest rates. As the slowdown pressure on the U.S. real economy deepens, warning lights have also flickered on financial soundness indicators. According to the Federal Reserve's May 2026 Financial Stability Report, household and auto loan delinquency rates have been rising continuously since last year. The average credit card delinquency rate at major banks rose from 1.8% in the second quarter of last year to the 2.4% range in the second quarter of this year.

As of July 2026, the average price-to-book ratio of major U.S. banks stands at 1.3 times. U.S. investment bank Oppenheimer downgraded the investment rating of Bank of America and Citigroup on June 30, 2026, citing the burden of record-high stock prices.