Trading Points: Bank Earnings Soar and So Does Market/Credit Risk
- 23 hours ago
- 5 min read
Updated: 16 hours ago
"The last leg of a bull market always ends in hysteria;
the last leg of a bear market always ends in panic."
Jim Rogers
July 15, 2026 | In this issue of The Institutional Risk Analyst, we provide a few thoughts on bank earnings and a portfolio update before our quarterly subscriber call tomorrow. A couple of observations seem to be appropriate on record Q2 2026 earnings and equally large bank risk to public and private markets as exuberance reaches a near-term peak.
JPMorgan (JPM) had a very strong quarter, with net revenue up 28% YOY and 15% sequentially. CEO Jamie Dimon noted this is hard to beat, perhaps presaging a slower pace in 2H 2026.
Dimon likes to talk down his stock, so take his warning about market conditions with adequate seasoning. Fact is, while JPM has record earnings from market sources they also have the biggest risk to public and private markets of any US bank. Among major U.S. banks, JPM carries the largest total volume of exposure to non-depository financial intermediaries (NDFIs), with nearly $240 billion.
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