Three of America’s largest banks reported strong third-quarter results on Tuesday, with JPMorgan Chase, Goldman Sachs, and Citigroup each surpassing analyst expectations.
The gains were powered by a resurgence in trading activity and a wave of dealmaking, reflecting renewed momentum across Wall Street’s core businesses. As each institution reported revenue records or near-records in key divisions, executives pointed to a competitive environment and ongoing talent and tech investments as drivers for continued growth.
JPMorgan Chase reported third-quarter results that exceeded analyst expectations, driven by a surge in trading and investment banking revenue. The bank posted earnings per share of $5.07 on revenue of $47.12 billion, both ahead of consensus estimates. Profit climbed 12% to $14.39 billion, while revenue rose 9% compared to the same period last year.
Trading activity was a major contributor, with the firm’s trading revenue reaching $8.9 billion – a record for a third quarter. Fixed income trading jumped 21% to $5.6 billion, and equity trading surged 33% to $3.3 billion. Investment banking fees also rose 16% to $2.6 billion, reflecting a rebound in dealmaking and underwriting activity as markets responded to policy shifts and global economic uncertainty.
Despite the strong results, CEO Jamie Dimon struck a cautious tone regarding the broader economic outlook.
“While there have been some signs of a softening, particularly in job growth, the US economy generally remained resilient,” Dimon said, pointing to "a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation.”
Dimon emphasized the need for resilience, stating the firm is positioning itself for a wide range of scenarios.
JPMorgan’s provision for credit losses rose 9% to $3.4 billion, exceeding analyst forecasts and signaling the bank’s anticipation of potential loan defaults. The increase was partly attributed to issues in the auto lending sector, including losses tied to Tricolor Holdings, the used car seller that recently filed for bankruptcy amid allegations of fraud.
“It’s not our finest moment,” Dimon said, referring to the Tricolor exposure.
The bank’s consumer division also saw increased activity, with debit and credit card spending up 9%. However, the rise in revolving balances and higher loan loss provisions suggest that some consumers may be struggling as unemployment ticks higher and wage growth slows. Still, CFO Jeremy Barnum noted that 2025 has been “the best year ever” for new account acquisitions in the Chase Sapphire credit-card franchise.
Goldman Sachs' third-quarter results surpassed expectations, propelled by a surge in investment banking and fixed income trading. The bank reported earnings per share of $12.25 on revenue of $15.18 billion, both well above analyst forecasts. Profit jumped 37% to $4.1 billion, and revenue increased 20% year over year.
Investment banking was the standout, with fees climbing 42% to $2.66 billion. This growth outpaced rivals and marked the strongest quarter for the division in the company’s history.
The gains were driven by a wave of mergers and acquisitions, as well as robust activity in debt underwriting. Advisory fees contributed $1.4 billion, while equity and debt underwriting generated $465 million and $788 million, respectively.
Fixed income trading revenue rose 17% to $3.47 billion, benefiting from heightened activity in interest rate products, mortgages, and commodities. Equities trading revenue grew 7% to $3.74 billion, though it fell short of analyst expectations after two strong quarters.
Goldman’s asset and wealth management arm also set new records, with assets under supervision reaching $3.45 trillion. On Monday, the bank announced its acquisition of Industry Ventures, a venture capital firm, as part of its strategy to expand in private markets.
The rosy results were somewhat dimmed by a 14% increase in operating expenses to $9.45 billion, which reflected higher compensation costs amid the bank’s strong performance and ongoing hiring.
Citigroup reported third-quarter earnings that beat Wall Street estimates, with every major business line posting record revenue. Adjusted earnings per share came in at $2.24, above the $1.90 expected, while revenue totaled $22.09 billion, surpassing forecasts by $1 billion. Net income rose 15% to $3.8 billion, and overall revenue increased 9% from a year earlier.
The banking division led the way, with revenues surging 34%. The markets segment delivered its best third quarter ever, with revenues up 15% to $5.6 billion, as both equities and fixed income trading outperformed analyst projections. Services and US retail banking each posted 7% revenue growth, while the wealth division saw an 8% increase, driven by the firm's Citigold platform for affluent clients.
CEO Jane Fraser attributed the strong performance to ongoing investments in technology and new products, maintaining that the bank’s strategy is “delivering stronger business performance quarter after quarter and improving our returns.”
Fraser also highlighted progress in the bank’s transformation agenda, noting that more than two-thirds of key remediation programs are at or near target.
Read more: Citi and UBS units settle with CFTC over compliance claims
Citigroup’s expenses climbed 9%, driven by higher compensation costs and the planned sale of a 25% stake in its Mexico business, Banamex. The bank’s stock has risen more than 37% this year, outperforming the S&P 500 and most major US banking peers.
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