Big US banks rake in near $50bn profit as Iran war shakes markets
Summary
Big US banks earned nearly $50 billion in profits in the first three months of 2026. This rise was mainly due to increased trading activity as investors reacted to market uncertainty caused by the US-Israeli conflict with Iran.Key Facts
- Six major US banks (Bank of America, Morgan Stanley, Goldman Sachs, JP Morgan, Citi, Wells Fargo) made a total of $47.4 billion in profits in Q1 2026.
- Investors sold risky stocks and bonds, seeking safer places for their money amid the Iran conflict.
- The conflict disrupted oil tanker routes, raising energy prices, inflation, and borrowing costs, which could hurt global economic growth.
- JP Morgan’s profits jumped 13% to $16.5 billion compared to last year.
- Goldman Sachs’ profits increased by 19% to $5.6 billion in Q1.
- Citi’s profits rose 42% to $5.8 billion, and Morgan Stanley’s profits went up 30% to $5.6 billion.
- Banks spent billions buying back their own shares, with JP Morgan’s $8.3 billion buyback being a record for the bank.
- The International Monetary Fund warned that the Iran conflict could cause a global recession and slow US growth to 2.3% in 2026.
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