Gotrade News - Major US bank stocks rallied sharply as trading desks reported record quarterly revenue. JPMorgan Chase, Goldman Sachs, and Bank of America all reported Q1 results that exceeded Wall Street expectations.
Key Takeaways:
- Major bank trading desks posted record quarterly revenue driven by geopolitical volatility
- PNC Financial reported EPS of $4.13, beating the $4.05 consensus estimate
- BNY Mellon announced a $10 billion share buyback after its strongest sales quarter
PNC Financial Services stood out with diluted EPS of $4.13 and adjusted EPS of $4.32 versus the $4.05 consensus. Revenue came in at $6.17 billion, up 13% year-over-year, according to Benzinga.
PNC CEO Bill Demchak said "2026 is off to a great start for PNC" after successfully closing the FirstBank acquisition. Strong legacy loan growth was the primary driver of the quarter's performance.
BNY Mellon posted its strongest quarterly sales performance ever and announced a $10 billion share buyback program. This reflects management's confidence in the outlook for its custody and asset servicing business.
Charles Schwab was a notable exception as shares dipped after revenue disappointed on weaker-than-expected net interest income. KeyCorp also traded lower despite beating on earnings as its net interest margin fell short.
US Bancorp reported strong loan growth and improvement in its payments segment. These results add to evidence that the US banking sector is broadly healthy heading into the second half of 2026.
BofA Securities raised its PNC price target from $260 to $264 while maintaining a Buy rating. Keefe Bruyette & Woods also increased its target from $247 to $253 while keeping a Market Perform rating.
Market volatility from the Iran conflict proved a windfall for trading desks that capitalized on sharp price swings. This trend shows that major banks are increasingly skilled at converting uncertainty into revenue opportunity.
Sources:
- Benzinga, PNC Financial Analysts Boost Forecasts, 2026
- Benzinga, Stock Market Today, 2026
