Citigroup and Bank of America yesterday posted higher-than-expected second-quarter profit, helped by gains in credit cards, mortgage lending and investment banking.
The nine other largest US banks are set to report earnings later this week.
Analysts say an improving economy, rising stocks and increased lending as interest rates sit near 45-year lows should fuel profits.
Citigroup, the world's leading financial services company, said profit rose 5 per cent to $4.3 billion (€3.8 billion), from $4.08 billion a year earlier.
The year-ago number included $255 million for discontinued operations. Citigroup also raised its dividend 75 per cent - its second increase this year.
The rising earnings come as chairman Mr Sanford Weill tries to expand the group's consumer base, while maintaining its position as the top global stock and bond underwriter.
Revenue rose 8 per cent to $19.4 billion and assets rose 9 percent to $1.19 trillion.
Bank of America, the third-largest US bank, said profit rose to $2.74 billion from $2.22 billion.
The North Carolina-based bank, which last month increased its dividend 25 per cent, reported gains in its mortgage, debit and credit card, deposit and loan businesses. Mortgage banking income quadrupled to $559 million as originations reached a record $40 billion.
"The consumer is still very strong," said chief financial officer Mr James Hance in a conference call. "We see very low [defaults] across all categories of consumer loans, including credit cards." - (Reuters)
