Major and regional U.S. banks reported a mixed second quarter in 2026: several posted higher profits, but net interest margin (NIM) did not move in one direction across the group. JPMorgan Chase’s headline profit growth included substantial investment-related gains, while the margin comparisons reported by Fifth Third, First Busey and M&T ranged from sequential expansion to a year-over-year increase paired with a quarterly decline. These results are examples, not a census of the banking sector.
Why can bank profits rise while margins weaken?
NIM measures the spread a bank earns on interest-bearing assets relative to the cost of its funding. It is one important driver of earnings, but not the only one. A bank’s profit can also reflect fee income, trading and investment results, loan and deposit volumes, expense control, credit costs, and one-time or unusual gains. Those factors can offset weaker margin performance at an individual bank, but they do not affect every institution equally.
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For Q2 2026, the releases show why it is important to separate reported earnings from adjusted results, and sequential NIM changes from year-over-year comparisons. A higher profit figure alone does not establish that core earnings improved by the same amount or that margins strengthened.
What the banks reported
| Bank | Profit or NII result | NIM or funding-cost comparison | Important context |
|---|---|---|---|
| JPMorgan Chase | Net income was $21.2 billion, up 41% year over year. The company also reported $16.9 billion of net income excluding significant items, up 13%. | Not stated in the cited results summary. | The company identified $4.6 billion of gains related to Visa shares and $1.0 billion of gains on certain equity investments. |
| Bank of America | Net income was $9.1 billion, versus $7.2 billion a year earlier, up 27%. Net interest income (NII) was $16.0 billion, up 9%. | Not stated in the cited results summary. | The company cited Global Markets activity, higher loan and deposit balances, and fixed-rate asset repricing as contributors to NII growth, partly offset by lower interest rates. |
| Fifth Third | Not stated in the cited results summary. | NIM expanded 6 basis points sequentially. Interest-bearing deposit costs were 2.13%, down 2 basis points sequentially. | Net charge-offs were 30 basis points. |
| First Busey | Not stated in the cited results summary. | Adjusted NIM was 3.62%: up 29 basis points year over year, but down 2 basis points sequentially. | The company reported record wealth-management fee income. |
| M&T | Not stated in the cited results summary. | NIM was 3.70%, unchanged sequentially and up from 3.62% in Q2 2025. | The company modified the methodology for certain annualized taxable-equivalent rates and interest-bearing liabilities in Q2 2026; previously reported amounts were adjusted to conform to the current presentation. |
All figures are from the banks’ Q2 2026 results releases. The margin comparisons retain each company’s stated period and, where applicable, adjusted or taxable-equivalent basis; they should not be read as a single like-for-like ranking.
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JPMorgan’s headline growth included investment gains
JPMorgan Chase reported Q2 net income of $21.2 billion, a 41% increase. That headline included $4.6 billion of gains related to Visa shares and $1.0 billion of gains on certain equity investments. The company separately reported net income excluding significant items of $16.9 billion, up 13%. That is a company-defined adjusted figure, not GAAP net income.
JPMorgan also attributed part of the results to elevated market activity and reported growth in Markets revenue. 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.” His comment appeared in the company’s Q2 2026 results release alongside the reported and adjusted earnings figures.
Bank of America cited NII growth and multiple revenue drivers
Bank of America reported net income of $9.1 billion, compared with $7.2 billion a year earlier, and NII of $16.0 billion, up 9%. The company attributed NII growth to Global Markets activity, higher loan and deposit balances, and fixed-rate asset repricing, partly offset by lower interest rates.
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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesIts release also cited sales and trading revenue, asset-management fees, and investment-banking fees among factors lifting revenue. These sources of income help explain how earnings can grow without relying solely on a wider interest spread. The company’s results also include credit-loss provision, expenses, deposit and loan information, and CET1 capital data; those measures provide context beyond the headline profit comparison.
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Margin trends differed by bank and comparison period
Sequential movement: Fifth Third and First Busey
Fifth Third reported a 6-basis-point sequential NIM expansion. It also reported interest-bearing deposit costs of 2.13%, down 2 basis points from the prior quarter, and net charge-offs of 30 basis points. Together, these figures offer context on margin, funding costs, and credit losses; they do not by themselves explain the bank’s full earnings performance.
First Busey’s adjusted NIM illustrates why the comparison period matters: it rose 29 basis points year over year to 3.62%, yet slipped 2 basis points sequentially. The company also reported record wealth-management fee income, a separate source of revenue from interest spread.
M&T: flat sequentially, higher year over year
M&T reported a 3.70% NIM for Q2 2026, unchanged from Q1 and higher than 3.62% in Q2 2025. Its release notes that, in connection with implementing a new general-ledger platform during Q2, the bank changed the calculation methodology for some annualized taxable-equivalent rates and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts were adjusted to match the current presentation, a relevant qualification for direct comparisons.
How to assess whether profit growth is durable
Read the earnings release across several dimensions rather than treating profit or NIM as a stand-alone verdict. The relevant measures differ by bank, and definitions matter when comparing them.
- Reported versus adjusted earnings: Identify any company-defined exclusions and the nature of the excluded items. JPMorgan’s $16.9 billion figure excludes specified significant items; it should not be labeled GAAP net income.
- NIM and NII: Check whether the comparison is sequential or year over year, and whether the figure is adjusted or presented on a taxable-equivalent basis. A quarterly decline can coexist with a year-over-year increase.
- Credit quality: Consider credit-loss provisions, net charge-offs, and nonaccrual indicators. These measures describe different aspects of lending risk and should not be treated as interchangeable.
- Revenue mix: Separate interest income from fees and markets activity. The releases cited trading, investment banking, asset management, and wealth-management income as additional contributors at various banks.
- Funding and balance-sheet trends: Look at deposit pricing alongside loan and deposit balances. Growth in balances and changes in deposit costs can affect NII even when interest rates are moving.
- Expenses and capital: Operating costs, efficiency measures, and capital ratios help put earnings in context. Bank of America’s release reported CET1 information, and M&T’s included credit and efficiency measures.
These factors provide a framework for interpreting the releases, not a claim that any one driver explains every bank’s results. The Q2 figures are historical results published by the banks, not a forecast or a statistical estimate for the entire U.S. banking sector.
Quick Recap
Sources
- JPMorgan Chase & Co., “JPMorgan Chase Reports Second-Quarter 2026 Financial Results,” July 14, 2026.
- Bank of America Corporation, “Bank of America Reports Second-Quarter 2026 Financial Results,” July 14, 2026.
- M&T Bank Corporation, “M&T Bank Corporation Announces Second Quarter 2026 Results,” July 15, 2026.
- Fifth Third Bancorp, “Fifth Third Bancorp Reports Second Quarter 2026 Earnings,” July 17, 2026.
- First Busey Corporation, “First Busey Corporation Announces 2026 Second Quarter Earnings,” July 28, 2026.
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