Big banks report soaring profits amid tensions with Trump over credit card interest rates

NEW YORK (AP) — Setting speech their existent combat with the White House, things are looking bully connected Wall Street.

The latest trio of large banks reported their results Wednesday — Bank of America, Citigroup and Wells Fargo — and portion each of them bash antithetic flavors of banking the taxable is the same: profits are up, dealmaking is healthy, and the user is doing conscionable fine.

“While immoderate fig of risks continue, we are bullish connected the U.S. system successful 2026,” said Brian Moynihan, CEO and president of Bank of America, successful a statement.

Moynihan added that businesses and consumers are “proving resilient.” Mark Mason, Citigroup's main fiscal officer, utilized the aforesaid connection to picture however consumers and businesses were doing.

"The U.S. system is doing conscionable fine. There’s downside risks retired there, geopolitical risks successful particular. But erstwhile I measurement backmost and look astatine it holistically, we person an system that has managed uncertainty and risks successful a resilient benignant fashion," Mason told reporters connected Wednesday.

Up until past weekend, the large banks had recovered an state successful the White House successful President Donald Trump. Trump signed the One Big Beautiful Bill into instrumentality successful July, which pushed different important circular of taxation cuts. Trump’s slope regulators person besides been pushing a deregulatory docket that some banks and ample corporations person embraced. Many companies person embraced dealmaking past year, which led to a dependable watercourse of concern banking revenues and fees to the large banks.

But present the banks and Trump are butting heads. Trump said Friday that helium wants to headdress involvement rates connected recognition cards astatine 10%, and has been supportive of his Justice Department's probe into Jerome Powell, the president of the Federal Reserve, which bankers spot arsenic a menace to the independency of the nation's cardinal bank. Trump does not look to beryllium backing down connected his attacks arsenic well, doubling down successful comments to reporters Tuesday night.

For these large banks, galore of which person ample and profitable recognition paper businesses, these banks reason that a recognition paper involvement complaint headdress simply cannot happen.

“Affordability is simply a large contented and we look guardant to collaborating with the medication connected ways we tin code this,” Mason with Citi said. “But an involvement complaint is not thing we could oregon would support. It would restrict recognition to those who request it the astir and person a delirious interaction connected the economy.”

Bank executives told reporters they weren’t seeing overmuch grounds of a “K-Shaped” economy, wherever the affluent get richer and the bottommost fractional bash little well. Further, the user continues to walk and different metrics astir user fiscal wellness similar delinquencies and charge-offs stay stable.