JPMorgan, Citibank, Wells Fargo, and Goldman Sachs... Big Banks' Earnings Surge on Record Trading and Dealmaking

In a quarter marked by market volatility fueled by trade tensions and a resilient U.S. economy, Wall Street's giants delivered standout performances that underscored their adaptability.

JPMorgan Chase shattered records with nearly $9 billion in trading revenue, Goldman Sachs rode a wave of investment banking fees, Wells Fargo unlocked growth potential after shedding regulatory shackles, and Citigroup fired on all cylinders with every division hitting new highs. These results not only beat expectations but also highlighted how policy shifts under President Donald Trump have supercharged banking activity, from roiled markets to a merger boom. Yet, as CEOs like Jamie Dimon warn of uncertainties ahead, the sector's fortunes remain tethered to broader economic winds.

JPMorgan Chase: Record Trading Haul Powers Profit Jump

JPMorgan Chase kicked off earnings season with a bang, reporting third-quarter profit of $14.39 billion, up 12% from a year ago, translating to $5.07 per share—well above the $4.84 analysts anticipated. Revenue climbed 9% to $47.12 billion, surpassing the $45.4 billion forecast. The star of the show was trading, where revenue hit a third-quarter record of $8.9 billion, as noted by CEO Jamie Dimon. Fixed-income trading soared 21% to $5.6 billion, beating estimates by $300 million, while equities jumped 33% to $3.3 billion, also $300 million ahead of projections.

This surge reflects broader market dynamics under the Trump administration, where policy upheavals have prompted investors to reposition amid global turbulence. Investment banking fees added to the momentum, rising 16% to $2.6 billion, slightly edging out the $2.5 billion expected. Dimon, ever the cautious strategist, praised the strong economic backdrop but flagged risks like geopolitical tensions, tariffs, elevated asset prices, and persistent inflation. "We prepare the firm for a wide range of scenarios," he emphasized, a nod to the bank's increased provision for credit losses, which rose 9% to $3.4 billion—exceeding the $3.08 billion estimate—as a buffer against potential loan defaults.

The performance cements JPMorgan's edge over peers, with big banks like it outperforming regionals this year. The KBW Bank Index has risen nearly 15%, while the regional index has dipped about 1%, highlighting the scale advantages in volatile times.

Goldman Sachs: Investment Banking Boom Fuels Beat

Goldman Sachs, the quintessential Wall Street player, turned in a robust third quarter, with profit surging 37% to $4.1 billion, or $12.25 per share—crushing the $11 forecast. Revenue advanced 20% to $15.18 billion, topping the $14.1 billion expected. The driver? A 42% leap in investment banking fees to $2.66 billion, $500 million more than anticipated, fueled by a rebound in mergers and debt underwriting.

Like its rivals, Goldman benefited from Trump-era market disruptions, which have stirred activity in bonds, currencies, commodities, and stocks. Fixed-income trading revenue grew 17% to $3.47 billion, $280 million above estimates, driven by interest rate products, mortgages, and commodities. Equities trading, however, lagged slightly, up 7% to $3.74 billion but $160 million short of projections. Still, the overall haul aligns with industry trends: global dealmaking volumes climbed 22% in the quarter, per Dealogic, as companies pursued scale despite trade uncertainties.

Beyond earnings, Goldman made strategic moves, acquiring Industry Ventures—a venture capital firm with $7 billion in assets—to strengthen its asset management arm. Shares, up 37% year-to-date through Monday, dipped 2% in premarket trading post-earnings, perhaps reflecting profit-taking amid high expectations. The results affirm Goldman's pivot toward more stable revenue streams, even as trading remains its core.

Wells Fargo: Asset Cap Lift Ignites Growth Ambitions

Wells Fargo emerged from years of regulatory purgatory with a triumphant third quarter, posting profit of $5.59 billion, or $1.66 per share—beating the $1.55 estimate. The lift came after the Federal Reserve removed a seven-year $1.95 trillion asset cap in June, imposed over the fake accounts scandal. This freed CEO Charlie Scharf to accelerate expansion, pushing total assets past $2 trillion for the first time and marking the highest loan growth in over three years.

In a bold signal, Wells Fargo hiked its medium-term return on tangible common equity target to 17%-18%, from 15%, a level it hit in the prior two quarters. "Without the regulatory constraints, we're a significantly more attractive company," Scharf told analysts, outlining aspirations to lead in U.S. consumer and small business banking, wealth management, and rank among the top five investment banks. The bank has closed 13 consent orders since 2019, with just one from 2018 remaining.

Credit quality shone brightly, with provisions for losses dropping to $681 million from $1.07 billion a year ago, amid resilient consumer spending. CFO Michael Santomassimo noted strong performance across portfolios, including autos, where the bank avoids heavy subprime exposure. Investment banking fees hit a quarterly record of $840 million, up 25%, buoyed by a 19% year-to-date surge. A highlight: advising Union Pacific on its $85 billion acquisition of Norfolk Southern, the year's largest deal, with Wells Fargo involved in half of 2025's top industrial transactions.

Scharf highlighted winning bigger, more complex M&A mandates, supported by hiring 80-100 investment bankers in recent years—with more to come. Shares jumped 7.6% post-earnings, building on a 12.4% year-to-date gain, though still trailing peers like JPMorgan and Citigroup. Analysts like those at Piper Sandler see this as a shift from defense to offense, with renewed urgency under Scharf.

Citigroup: Across-the-Board Records Drive Earnings Lift

Citigroup capped the big-bank reports with a flourish, delivering adjusted earnings of $2.24 per share—far exceeding the $1.90 forecast—and revenue of $22.09 billion against $21.09 billion expected. Net income rose 15% to $3.8 billion, with revenues up 9%, as every division set third-quarter records. Services revenue grew 7% to its best ever, banking jumped 34%, and markets rose 15%—its strongest third quarter.

CEO Jane Fraser credited investments in products, digital assets, and AI for driving innovation and performance. "The relentless execution of our strategy is delivering stronger business quarter after quarter," she said. Expenses rose 9%, partly from costs tied to selling a 25% stake in its Mexico unit, Banamex, ahead of an IPO; including a goodwill impairment, profit climbed 23% to $1.86 per share.

The results propelled shares up over 4%, adding to a more than 40% year-to-date surge that outpaces the S&P 500. Citigroup's diversified model shone, capitalizing on the same deal frenzy and market volatility boosting rivals, while emphasizing tech-driven efficiencies.

A Sector Poised for Turbulence?

Collectively, these earnings paint a picture of a banking sector thriving on Trump administration tailwinds—higher trading from policy-induced volatility, a merger resurgence amid relaxed regulations, and buoyant markets lifting wealth units. Yet, executives' tones carry caution: Dimon's warnings of geopolitical and inflationary risks echo across reports, with provisions signaling preparedness for softer job growth or credit hiccups.

Big banks' outperformance over regionals underscores their global reach and diversification, but challenges loom. As deal pipelines remain robust and credit holds firm, the question is whether this momentum can withstand potential economic softening. For now, Wall Street's titans are not just surviving—they're capitalizing on chaos, setting the stage for what could be a pivotal fourth quarter.