JP Morgan says strong Q2 results from large Wall Street banks—driven by trading
and investment-banking fee beats—lift optimism ahead of Europe’s IB reporting
season. US bank managements report ample M&A and financing deal pipelines and
continued underlying activity, supporting near-term fee revenue. JP Morgan
highlights valuation gap: Goldman and Morgan Stanley trade around 15x 2028
expected EPS versus roughly 8.5x for European peers, leaving scope for a
re‑rating and potential upward revisions to EPS consensus, said Kian
Abouhossein, co‑head of JP Morgan global banking research. The bank remains
constructive despite an expected slowdown in H2, noting persistent market
uncertainty should continue to support trading revenues while IB deal backlogs
stay healthy.
