JP Morgan, Wells Fargo, & BlackRock Q2 Earnings Report 2025

Ray Marce

Alright, welcome back to Market & Earnings Digest. I’m Ray Marce, here with Mark Dalli. Today, we’re diving into the big bank earnings—JPMorgan, Wells Fargo, and BlackRock. Mark, let’s kick off with JPMorgan Chase. They managed to beat expectations, but the headlines are all about those year-over-year declines. What’s your take?

Mark Dalli

Yeah, Ray, it’s a bit of a paradox, isn’t it? JPMorgan’s Q2 net income came in at $15 billion, which is down 17% from last year, but that’s mostly because of a one-off gain in 2024. If you strip out that $774 million tax benefit, adjusted net income is $14.2 billion. Still, they beat the LSEG revenue estimate—$44.9 billion reported, $45.7 billion managed revenue, both down about 10-11% year-over-year, but above what analysts were expecting.

Ray Marce

Exactly. And I think it’s easy to get lost in the headline numbers, but if you look at the segments, there’s a lot of strength. Consumer & Community Banking—net income up 23%, revenue up 6%. That’s not trivial, especially with home lending dipping. Commercial & Investment Bank, too—net income up 13%, revenue up 9%. And Asset & Wealth Management, net income up 17%, revenue up 10%. That’s $4.3 trillion in AUM, up 18%. It’s like, even with the global risks, they’re still finding ways to grow in the right places.

Mark Dalli

Yeah, and Jamie Dimon was pretty clear on the call—he said the U.S. economy’s still resilient, but he’s watching inflation, tariffs, and all the geopolitical stuff. I mean, we’ve talked about this in previous episodes, right? The macro risks are always there, but the best banks just keep adapting.

Ray Marce

That’s it. It actually reminds me of a stock I picked during the Brexit mess—everyone was panicking, but the fundamentals were solid, and it ended up outperforming. JPM’s kind of doing the same thing here. They’re not immune to the environment, but they’re showing they can deliver, even when the backdrop’s tough. And, you know, return on tangible common equity at 21%—that’s still best-in-class.

Mark Dalli

And the market seemed to like it, too. Shares were up modestly after the report. No signs of consumer weakness, delinquencies are normalizing, and they’re sticking to their dividend and buyback plans. It’s not a blowout quarter, but it’s a solid one, especially given the context.

Ray Marce

Yeah, and their Q3 guidance is for revenue around $45 billion, give or take. So, they’re not expecting a dramatic shift, but they’re staying the course. I think for investors, it’s a reminder—look past the noise, focus on the segments and the execution. That’s where the real story is.

Mark Dalli

Let’s move on to Wells Fargo. This one’s interesting—adjusted profit beat, but the market didn’t love the guidance. Net income was $5.5 billion, up 3% from Q1 but down 2% year-over-year. Revenue was $20.82 billion, just edging out estimates. But net interest income, that’s where the pain is—down 3% year-over-year, and they cut their full-year NII guidance to a 7-9% decline. That’s a bigger drop than they’d previously signaled.

Ray Marce

Yeah, and you can see why the shares dipped after the report. But there are some positives. Fee income’s up, provisions for credit losses are down, and they’re keeping a tight lid on costs. I think what stands out is CEO Charlie Scharf’s focus on getting the regulatory house in order. The asset cap that’s been in place since 2018 was finally lifted. That’s a big deal, right?

Mark Dalli

Absolutely. From an analyst’s perspective, that asset cap was a huge competitive handicap. Now that it’s gone, Wells can actually grow again, especially in areas like commercial lending and wealth management. Their AUM is up 12% to $2.1 trillion, and investment banking fees jumped 20%. But, you know, the NII headwinds are real—deposit repricing, higher funding costs, all that. They’re trying to offset it by investing in technology and pushing for more fee-based revenue, but it’s not an overnight fix.

Ray Marce

Yeah, and Scharf was pretty upfront about the risks—persistent inflation, geopolitical stuff, all the usual suspects. But he also pointed out that consumer spending’s still holding up, even if credit card volumes softened a bit quarter-over-quarter. Delinquencies are normalizing, but still low. It’s not a crisis, just a tougher environment.

Mark Dalli

Right, and I think for investors, it’s about patience. Wells is in transition—regulatory overhang’s finally easing, but now they’ve got to execute on the tech and fee growth strategy. If they can do that, they could regain some of the ground they lost to peers like JPMorgan. But, you know, it’s not going to be a straight line.

Ray Marce

Yeah, and it’s a good reminder—sometimes the best opportunities come when a company’s just coming out of the penalty box. But you’ve got to watch the execution, especially with the macro headwinds. I mean, we’ve seen this before—turnarounds can take time, but if they get it right, there’s upside.

Ray Marce

Alright, let’s wrap up with BlackRock. This one’s a bit of a juggernaut—record $12.5 trillion in assets under management, up 18% year-over-year. Revenue up 13%, net income up 7%, and adjusted EPS up 16%. But, oddly, shares were down after the report. What’s going on there, Mark?

Mark Dalli

Yeah, it’s a classic case of “beat the numbers, but the market wanted more.” They had $68 billion in net inflows, and if you exclude a big single-client redemption, it’s $116 billion. ETFs led the way—$85 billion in inflows. Technology platform revenue, like Aladdin and Preqin, up 26%. But performance fees were down, and the effective fee rate dipped a bit, probably due to fundraising timing and some market volatility. Plus, expenses are up—mainly from acquisitions like HPS and Preqin.

Ray Marce

Yeah, and CEO Larry Fink was talking about momentum accelerating, especially with the HPS acquisition adding $165 billion in AUM and a nice revenue boost for Q3. They’re really leaning into integrating public and private markets, and the tech side is becoming a bigger part of the story. It’s wild to think how much scale matters now. I remember my first ETF investment—felt like a big deal at the time, but now, with BlackRock’s $4.7 trillion in ETF assets, it’s just a different world for investors.

Mark Dalli

It really is. And for the modern investor, BlackRock’s scale means lower costs, more product choice, and access to markets that used to be out of reach. But, you know, with that size comes scrutiny—performance fees are under pressure, and the market’s always looking for the next leg of growth. They’re targeting a 45%+ operating margin over the cycle, but expenses are going to be higher as they integrate these new businesses.

Ray Marce

Yeah, and they’re not shying away from buybacks or dividends, either. For investors, it’s about staying focused on the long-term story—organic growth, tech leadership, and the ability to weather whatever the market throws at them. I think, if anything, this quarter shows that even the giants have to keep evolving.

Mark Dalli

Absolutely. And with all the macro risks we’ve been talking about—persistent inflation, geopolitical tensions, all that—it’s the companies that can adapt and scale that are going to keep winning. Thats all we have for today folks, Make sure to follow us in order to stay informed for your weekly market updates and earnings reports. Take care, Ray.

Ray Marce

Cheers, Mark. And thanks to all our listeners, remember The information provided on this podcast is for informational purposes only and should not be considered financial advice. You should consult with a qualified financial advisor before making any investment decisions. We look forward to seeing you next time on Market and Earnings Digest.