iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Several major and regional U.S. banks reported higher profits in the second quarter of 2026, but the results do not show margins weakening everywhere. JPMorgan Chase’s headline earnings included substantial investment gains; Bank of America’s net income and net interest income rose; and reported net interest margin (NIM) trends ranged from sequential expansion to no change. The differences matter: profits can rise for reasons beyond lending margins, including fee income, trading, balance-sheet growth and one-time gains.
Why can bank profits rise while net interest margins weaken?
NIM measures the spread between interest income earned on assets and interest paid on funding, relative to interest-earning assets. It is one measure of banking profitability, not a complete explanation of a bank’s earnings. A bank can report higher net income even when its NIM falls over a particular comparison period if other revenue or balance-sheet factors offset the pressure.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
The Principles of Banking (Wiley Finance) | $59.05 | Buy on Amazon |
| 2 |
|
Becoming Your Own Banker: Unlock the Infinite Banking Concept | $20.00 | Buy on Amazon |
| 3 |
|
Investment Banking: Valuation, LBOs, M&A, and IPOs (Book + Valuation Models) (Wiley Finance) | $56.25 | Buy on Amazon |
| 4 |
|
Central Banking 101 | $20.00 | Buy on Amazon |
| 5 |
|
The Theory of Money and Credit | $8.50 | Buy on Amazon |
In these Q2 2026 results, those factors differ by bank. JPMorgan Chase pointed to elevated market activity and reported gains on investments. Bank of America cited Global Markets activity, higher loan and deposit balances, and repricing of fixed-rate assets as contributors to net interest income growth, partly offset by lower interest rates. First Busey reported record wealth-management fee income. These are company explanations, not evidence that the same drivers affected every bank.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
How much of the profit growth was recurring?
JPMorgan Chase: headline earnings included significant gains
JPMorgan Chase reported Q2 net income of $21.2 billion, up 41% from a year earlier. That headline included $4.6 billion in net gains related to Visa shares and $1.0 billion in gains on certain equity investments. The company also reported net income of $16.9 billion, up 13%, excluding significant items. That is a company-defined adjusted figure, not GAAP net income; the two figures answer different questions about the quarter.
#1 Best Overall
Chairman and CEO Jamie Dimon said the results reflected “a particularly favorable environment with an elevated level of market activity, as well as rigorous execution, years of consistent investment and thoughtful capital deployment.” The company’s explanation puts the earnings in context: market activity and investment gains contributed alongside its underlying business performance.
Bank of America: higher net income and net interest income
Bank of America reported net income of $9.1 billion, compared with $7.2 billion a year earlier, a 27% increase. Net interest income (NII) was $16.0 billion, up 9%. The bank attributed NII growth to Global Markets activity, higher loan and deposit balances, and fixed-rate asset repricing, partly offset by lower interest rates.
The company also cited sales and trading revenue, asset-management fees and investment-banking fees among the factors lifting revenue. Those fee and market businesses provide additional context for earnings; NII growth alone does not describe the full revenue picture.
What did NIM do at each bank?
The figures below use the comparison periods stated by each bank. Sequential means against the preceding quarter; year over year means against the same quarter a year earlier. They should not be combined into a claim that margins weakened across the group.
Rank #3
| Bank | Q2 2026 NIM result | Comparison |
|---|---|---|
| Fifth Third Bancorp | NIM expanded 6 basis points. | Sequential increase from Q1 2026. |
| First Busey Corporation | Adjusted NIM was 3.62%. | Up 29 basis points year over year, but down 2 basis points sequentially. |
| M&T Bank Corporation | NIM was 3.70%. | Unchanged sequentially; up from 3.62% in Q2 2025. |
These are not interchangeable measures: First Busey’s figure is explicitly adjusted, while the supplied results describe M&T’s figure as NIM. For a direct comparison, readers should also check each bank’s definitions and calculation basis rather than assume every reported margin is constructed identically.
M&T’s calculation-method change
M&T said that, in connection with implementing a new general-ledger platform in Q2 2026, it modified the calculation methodology for some annualized taxable-equivalent rates and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts were adjusted to conform to the current presentation. That qualification is relevant when comparing its figures with prior periods.
Rank #4
What else helps assess the quality of earnings?
Profit growth is more informative when read alongside credit costs, deposit pricing, expenses, balance-sheet growth and capital. These measures answer different questions; figures should be compared only when definitions and periods align.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minute- Credit: Fifth Third reported net charge-offs of 30 basis points. Bank of America reported a provision for credit losses, while M&T’s results include credit measures. A provision is not the same measure as net charge-offs, so the figures should not be treated as direct equivalents.
- Deposit pricing: Fifth Third’s interest-bearing deposit costs were 2.13%, down 2 basis points sequentially. Lower deposit costs can support the spread between interest earned and interest paid, though their effect depends on the bank’s broader balance sheet.
- Revenue mix: JPMorgan described elevated market activity and reported Markets revenue growth; Bank of America cited sales and trading and fee businesses; First Busey reported record wealth-management fee income. These are distinct sources of revenue, not NIM measures.
- Operating and balance-sheet context: Bank of America reported expenses, deposits, loans and CET1 information, and M&T reported credit and efficiency measures. Those indicators can add context on costs, growth and capital, but the figures summarized here do not establish a like-for-like cross-bank ranking.
What the Q2 results do—and do not—show
The releases from JPMorgan Chase, Bank of America, M&T, Fifth Third and First Busey offer examples from major and regional U.S. banks, not a census of the banking sector. Taken together, they show why a headline profit increase does not necessarily mean NIM improved: investment gains, fees, market activity, volumes, repricing and funding costs can each affect earnings. They also show that margin direction depended on the bank and comparison period—Fifth Third expanded sequentially, M&T was unchanged sequentially but higher year over year, and First Busey’s adjusted margin rose year over year while slipping from the prior quarter.
Best Value
Sources: JPMorgan Chase, July 14, 2026; Bank of America, July 14, 2026; M&T Bank, July 15, 2026; Fifth Third, July 17, 2026; First Busey, July 28, 2026.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
