Large US Banks Achieve Efficiency Gains through Tech Investments, According to Celent Report

US large banks reported positive Q2 earnings, with Citi beating forecasts and raising its net interest income forecast. Bank of America's revenues and net income rose 4% and 7% respectively. A common theme among the banks is the positive impact of tech-driven efficiency gains and AI. Celent's Michael Bernard notes that sustained consumer strength, increased digital engagement, and expense reductions boosted earnings. However, interest rates and a cool home lending market remain challenges.

US large banks reported robust Q2 earnings, with notable highlights from Citigroup Inc. (C) and Bank of America Corporation (BAC). Citigroup beat analysts' expectations, while Bank of America saw significant increases in revenues and net income. A common theme among the banks was the positive impact of tech-driven efficiency gains and AI.

Citigroup reported a 14.3% year-over-year increase in EPS, with analysts projecting an average target price of $393.61, suggesting a potential upside of 14.94% from the current share price [1]. Bank of America's revenues and net income rose 4% and 7% respectively, driven by higher net interest income and robust capital markets activity [2].

Celent's Michael Bernard noted that sustained consumer strength, increased digital engagement, and expense reductions boosted earnings. However, interest rates and a cool home lending market remain challenges [3].

References:
[1] https://www.gurufocus.com/news/3002951/hca-healthcare-hca-prepares-for-q2-earnings-announcement
[2] https://www.bloomberg.com/news/articles/2025-07-25/banks-unload-2-billion-of-hung-debt-tied-to-patterson-buyout
[3] https://stockanalysis.com/stocks/bac/