U.S. Banks Do Well Despite Tariff Conflict

(MENAFN) Major banking institutions in the United States have reported robust results for the second quarter, defying the challenges posed by President Donald Trump’s tariff policies and their associated uncertainties.

These earnings highlight the ongoing durability of the U.S. economy in the face of global trade friction.

There were widespread concerns that Trump’s tariffs on key international trade partners might alter the global economic trajectory.

Meanwhile, the Federal Reserve and other major monetary authorities were anticipated to have diminished flexibility in managing inflationary pressures.

Following the announcement of sweeping retaliatory tariffs on April 2, global markets have experienced increased instability. Rising trade disputes between the U.S. and countries such as China, Mexico, and Canada added to pre-existing threats.

At the same time, the mounting national debt of the U.S. has intensified economic worries.

Moody’s downgraded the credit rating of the United States from Aaa to Aa1, referencing the nation’s growing public debt and escalating interest expenses as key factors behind the decision.

The financial performance reports from top U.S. banks for the second quarter serve as a significant sign of the banking sector’s ongoing robustness.

This resilience continues to reinforce the broader U.S. economy.

Wells Fargo posted a 0.6% rise in revenue compared to the previous year, reaching $20.8 billion in Q2.

The bank’s net earnings climbed by approximately 12% annually, amounting to $5.5 billion.

“Earnings per share increased to $1.6 in the second quarter of 2025 versus $1.33 in 2024’s second quarter.”

Citigroup experienced a 25% surge in net income year-over-year, totaling $4 billion.

Its revenue advanced by 8% to reach $21.7 billion. Meanwhile, “its earnings per share rose from $1.52 to $1.96.”

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