The large Wall Street banks presented balance sheets with strong improvements, which exceeded expectations

The large Wall Street banks presented balance sheets with strong improvements, which exceeded expectations

This week, the six major Wall Street banks they announced the quarterly balances for the third part of the yearin which solid growth was exhibited in practically all relevant areas that exceeded the expectations of analysts and investors.

The balance sheet of JP Morgan bank

JP Morgan presented robust results: it obtained a net income of US$14,390 million ou$s5.07 per share, a year-on-year increase of close to 12% and higher than what analysts estimated.

Total revenues amounted to $46.43 billion, driven by 25% growth in markets revenues (equities +33%; fixed income +21%) and a 16% increase in investment banking fees.

The company also anticipated an increase for the remainder of 2025 in its net interest income (NII) guidance, reflecting its confidence in the interest rate environment.

Meanwhile, total loans grew slightly to US$1.44 trillion and deposits decreased slightly to US$2.55 trillion.

Goldman Sachs balance sheet

Goldman Sachs had a very favorable quarter. reported net income of US$4.1 billion and earnings per share of US$12.25. Total net income reached $15.18 billion, with an annualized return on common equity of 14.2%.

Investment banking fees rose sharply (around 42%) thanks to the rise of mergers, acquisitions and public offerings.

In contrast, the trading business (markets) had somewhat more moderate performances, something that some analysts pointed out as a point of attention.

Goldman also anticipated staff cuts and efficiency initiatives supported by artificial intelligence as part of its “OneGS 3.0” strategy.

Morgan Stanley Balance Sheets

Morgan Stanley exceeded expectations thanks to the good performance of its trading and investment banking business. got US$4.6 billion net profit and record revenues of US$18.2 billion.

Investment banking revenue grew 44%, reaching $2.11 billion, while equity trading revenue rose 35% to about $4.12 billion, surpassing Goldman in that segment.

The wealth management unit also grew 13%, adding assets under management and benefiting from the favorable environment.

wall street markets

Reuters

Citigroup balance sheet

In addition, Citi showed a broad recovery in its businesses, with a net income of US$3.8 billiona year-on-year increase of 16% compared to a year ago.

Revenue grew in almost all of its divisions: banking fees rose 34%, while markets revenue increased 16.7%.

However, this performance was partially mitigated by a loss of US$726 million related to the sale of 25% of its Mexican unit Banamex, which reduced adjusted profit.

Its return on tangible equity was 8%, or about 9.7% if that loss is excluded.

Wells Fargo Balance Sheet

Besides, Wells Fargo reported a net profit of US$5,589 million (US$1.66 per diluted share), compared to US$5,114 million in the same quarter of the previous year.

Total income reached US$21,436 million and non-interest expenses amounted to US$13,846 million.

The provision for credit losses fell significantly, to $681 million from $1,065 million the previous year, indicating an improvement in credit quality.

The bank highlighted that its growth was driven by the consumer segment, lending and a largely controlled expense environment.

Bank of America Balance Sheet

Bank of America closed the quarter with excellent figures, as it obtained a net income of US$8.5 billionwith a diluted earnings per share of US$1.06, which was well above market projections.

Total income (net of interest) reached US$28.1 billion, with a growth of 11% year-on-year.

Net interest income grew around 9%, while investment banking fees soared 43% to nearly US$2 billion.

Additionally, the bank raised its net interest income guidance for the fourth quarter to a range of between $15.6 billion and $15.7 billion (+8% versus the previous year). Credit quality also improved: loss provisions fell 16% and net bad debts fell 10.9%.

Bank of America also reported that it returned $7.4 billion to its shareholders through dividends and share buybacks.

In general terms, The third quarter of 2025 was significant for the big Wall Street banks. The revival of merger, public offering and corporate issuance activity brightened investment banking revenue lines.

Markets divisions (especially equities) also contributed prominently. Meanwhile, credit quality improved in several cases (Citi, Wells Fargo, Bank of America) and interest income guidance is beginning to show optimism for the fourth quarter.

Source: Ambito

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