Houston’s financial sector is catching the tailwinds of a robust bank earnings season, as the nation’s largest financial institutions reported better-than-expected results driven by AI infrastructure investment and active capital markets. JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs all topped analysts’ expectations when they reported second-quarter results on Tuesday.
JPMorgan Chase reported adjusted earnings per share of $6.14, beating the $5.85 Wall Street analysts surveyed by LSEG had expected. Adjusted revenue came in at $52.42 billion, exceeding the $50.19 billion consensus estimate. Bank of America, Citigroup, and Wells Fargo similarly reported strong results, fueled by growth in markets-related businesses and consumer spending resilience.
Goldman Sachs CEO David Solomon told CNBC that the AI infrastructure build-out cycle is still in its “early innings,” signaling continued opportunity for banks financing the massive expansion. “All the indicators we have is that we are in the relative early innings of a very, very significant AI build-out cycle,” Solomon said, adding that Goldman sees opportunities to deploy capital to clients financing this infrastructure.
Citigroup CEO Jane Fraser said AI is serving as a “tail wind” in the U.S. economy, noting that nearly nine out of ten Citi employees are using AI tools. “That’s not only driving productivity and client experience, but also growth, helping us bring products to market significantly faster,” Fraser said.
For Houston, a major financial hub with significant banking and investment operations, the strong earnings and AI-driven growth outlook are positive signals. Bank of America CEO Brian Moynihan told CNBC that the “economy is running fine right now,” with consumer spending higher in June and July. He noted that lower-income households are seeing wage growth and deposits in their accounts catching up to medium and higher earners.
Goldman Sachs reported that its deals backlog is at its highest level in five years, suggesting sustained activity in mergers, acquisitions, and capital raising. Solomon noted that Goldman is investing for a five-year AI cycle, despite acknowledging there will be “bumps” and “recalibrations” along the way. Headcount at Goldman fell 2% to 46,200 from the first quarter but is expected to rise in coming weeks.
