Analysis: Big Wall Street Banks Report Strong Earnings Surge

Quick overview

J.P. Morgan, Bank of America and other major Wall Street players delivered blockbuster third-quarter results, posting strong revenue growth across nearly all business lines and beating analyst expectations.

J.P. Morgan

J.P. Morgan reported a net income of $14.39 billion ($5.07 per share), up nearly 12% year over year and above forecasts.
Total revenue reached $46.43 billion, driven by a 25% surge in markets revenue (equities +33%, fixed income +21%) and a 16% jump in investment banking fees.
The bank also raised its net interest income (NII) guidance for 2025, signaling confidence in the rate environment.
Total loans rose slightly to $1.44 trillion, while deposits edged down to $2.55 trillion.

Goldman Sachs

Goldman Sachs had a very strong quarter, with net income of $4.1 billion and EPS of $12.25.
Net revenue hit $15.18 billion, with a 14.2% return on common equity.
Investment banking fees soared ~42%, fueled by a surge in M&A and IPO activity.
Trading performance was more moderate, which some analysts flagged as a concern.
The bank announced upcoming job cuts and AI-driven efficiency initiatives under its “OneGS 3.0” strategy.

Morgan Stanley

Morgan Stanley beat expectations thanks to standout performance in both trading and investment banking.
It earned $4.6 billion in net profit and posted record revenue of $18.2 billion.
Investment banking revenue jumped 44% to $2.11 billion, while equities trading climbed 35% to $4.12 billion, surpassing Goldman in that segment.
Wealth management also grew 13%, adding assets and benefiting from a favorable environment.

Citigroup

Citi delivered a broad-based recovery with net income of $3.8 billion, up 16% year over year.
Revenues rose across almost all divisions: banking fees +34%, markets +16.7%.
However, results were partially weighed down by a $726 million loss from selling 25% of its Banamex unit, reducing adjusted profit.
Return on tangible common equity was 8% (or ~9.7% excluding the loss).

Wells Fargo

Wells Fargo reported net income of $5.589 billion ($1.66 per share), up from $5.114 billion a year earlier.
Total revenue hit $21.436 billion, while noninterest expenses were $13.846 billion.
Credit-loss provisions fell sharply to $681 million, signaling improved credit quality.
Growth was driven by consumer banking, lending activity, and disciplined cost control.

Bank of America

Bank of America closed the quarter with net income of $8.5 billion and EPS of $1.06, far above market expectations.
Total revenue (excluding interest expense) reached $28.1 billion, up 11% YoY.
Net interest income rose ~9%, and investment banking fees soared 43% to nearly $2 billion.
The bank raised its NII guidance for Q4 to $15.6–$15.7 billion (+8% YoY).
Credit quality also improved: provisions fell 16% and net charge-offs dropped 10.9%.

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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