JPMorgan pulled in $15.0 billion in net income, or $5.24 per share. That’s a beat. Revenue hit $45.7 billion, up 8% year-over-year. But net income fell 17% from last year. Noninterest revenue dropped 20%. They built $439 million in reserves. That’s not bullish. It’s defensive.
Citigroup posted $4.02 billion in net income, or $1.96 per share. That’s a 25% jump from last year. Revenue came in at $21.7 billion, up 8%. Markets revenue surged 16%. Wealth jumped 20%. But they also built $224 million in reserves and flagged rising credit costs.
Both banks are still printing profits. JPM’s CET1 ratio is 15.0%. Citi’s is 13.5%. Dividends are up. Buybacks are rolling. But the bond market is flashing stress. The Bloomberg Government Bond Liquidity Index hit 6.5 this week. That’s worse than 2008. Long-term yields are climbing. Liquidity is vanishing.
If Powell holds rates high and dollar funding tightens, financials could be first in line. Watch credit quality. Watch reserve builds. Watch margin compression. The next few quarters will tell the story.
Sources
https://www.investopedia.com/jpmorgan-chase-q2-2025-earnings-jpm-11769780
https://www.cnbc.com/2025/07/15/jpmorgan-chase-jpm-earnings-q2-2025.html
https://www.citigroup.com/rcs/citigpa/storage/public/2025prqtr2rslt.pdf
https://www.sfgate.com/business/article/citigroup-q2-earnings-snapshot-20770337.php