Four of the largest US banks reported mixed third-quarter earnings on Tuesday, with Goldman Sachs, Citigroup and Wells Fargo beating Wall Street estimates, while JPMorgan Chase fell short of analysts’ profit expectations for the first time in nearly three years.
The results came after a turbulent quarter marked by the conflict in Iran, elevated oil prices and a global bond-market selloff, which affected dealmaking and trading activity across financial markets.
Goldman Sachs profit jumps as equities revenue surges
Goldman Sachs reported a third-quarter profit of $5.29 billion, or $17.01 per share, for the three months ended September 30. This compared with $4.10 billion, or $12.25 per share, in the corresponding period a year earlier.
The Wall Street bank benefited from resilient dealmaking and increased equities trading revenue amid market volatility linked to the Middle East conflict. Its shares rose nearly 1% in late-morning trading.
Equities revenue surged 72% to $6.44 billion during the quarter. However, revenue from fixed income, currencies and commodities declined.
Goldman’s investment banking division also navigated a slowdown in mergers and acquisitions. Global M&A activity fell 41% from the previous quarter to $993 billion, slipping below the $1 trillion mark for the first time since the second quarter of 2025, according to LSEG data.
JPMorgan misses profit estimates despite higher earnings
reported a third-quarter profit of $15.3 billion, or $5.57 per share, compared with $14.4 billion, or $5.07 per share, a year earlier. Analysts had expected earnings of $5.85 per share.
Market volatility and uncertainty surrounding the economic outlook weighed on dealmaking and bond-market trading activity.
Investment banking fees declined 8% from the second quarter, although they rose 14% year-on-year.
Revenue in the bank’s markets division increased 15% from a year earlier. Equity markets revenue surged 49% as investors adjusted their portfolios amid volatile conditions. Fixed-income trading revenue, however, fell 4%.
Citigroup profit rises 40% on stronger investment banking
reported a 40% year-on-year increase in third-quarter profit to $5.25 billion, or $2.85 per share.
The third-largest US lender benefited from stronger investment banking revenue, transactions involving multinational companies and higher wealth management earnings.
Investment banking revenue increased 9% year-on-year to $1.35 billion. However, it declined 13% from the previous quarter as equity and debt underwriting activity slowed.
Trading profits rose just 2% from a year earlier and fell 27% sequentially, primarily because of a decline in equity trading revenue.
Wells Fargo beats earnings estimates despite revenue shortfall
Wells Fargo reported third-quarter earnings of $1.87 per share, exceeding analysts’ average estimate of $1.85, according to LSEG data.
Its earnings benefited from loan growth and resilient consumer and business activity, which helped keep loan losses in check.
Net interest income rose 5% year-on-year to $12.52 billion but fell short of the $12.63 billion expected by analysts. The measure was affected by lower returns on floating-rate assets, higher deposit costs and a decline in non-interest-bearing deposits.
Revenue stood at $21.87 billion, below the market estimate of $22.31 billion.
The results highlighted the resilience of major US banks while underscoring the uneven impact of financial-market volatility on trading, lending and investment banking businesses.