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Big US banks post mixed Q3 results as equities trading surges

Big US banks post mixed Q3 results as equities trading surges

Money Moves

JPMorgan misses for first time since 2023; Goldman beats by 30% as bond trading weakens

October 14th, 2026: Bank of America posts weaker trading quarter

Overview

Updated Nov 1

JPMorgan Chase missed profit estimates for the first time since late 2023, while Goldman Sachs beat by 30% and Morgan Stanley topped expectations. The gap came down to equities trading, which rose 72% at Goldman and 49% at JPMorgan. Treasury yields had their biggest quarterly rise since 2009, which cooled bond desks.

Fixed-income trading fell at most big banks; Goldman was flat and Citi rose 4%. Bank of America was the hardest hit, with total trading revenue down 5% even as equities rose 11%. Executives flagged sticky inflation, higher rates, and energy costs as risks.

Why it matters

Big-bank profits now hinge on equities trading, a volatile revenue source that can reverse quickly if markets turn.

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Key Indicators

$17.01
Goldman Sachs Q3 earnings per share
Beat the $13.09 consensus by nearly 30%. FactSet's expected $12.86 would make the beat about 32%.
$5.57
JPMorgan Q3 earnings per share
Reported $5.57 per share versus the $5.85 consensus, the first miss since Q4 2023.
72%
Goldman equities revenue growth, year over year
Equities net revenues hit $6.44 billion on prime brokerage and derivatives.
49%
JPMorgan equity markets revenue growth, year over year
Strength in prime brokerage and derivatives trading.
12.4%
Goldman standardized CET1 capital ratio
Down from 12.9% in Q2 as risk-weighted assets grew.
17%
Bank of America fixed-income revenue decline, year over year
FICC revenue fell to $2.55 billion on weak mortgages, municipals, and credit trading.

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People Involved

Jamie Dimon
Jamie Dimon
Chairman and CEO, JPMorgan Chase
Leading the largest US bank by assets
CS
Charlie Scharf
CEO, Wells Fargo
Overseeing Wells Fargo's efficiency push
JB
Jeremy Barnum
CFO, JPMorgan Chase
Managing investor relations after the Q3 miss
 David Solomon
David Solomon
CEO, Goldman Sachs
Leading Goldman's trading and wealth push
 Brian Moynihan
Brian Moynihan
Chairman and CEO, Bank of America
Leading a bank that missed the Q3 trading boom
SY
Sharon Yeshaya
Chief Financial Officer, Morgan Stanley
Explaining Morgan Stanley's fixed-income weakness

Organizations Involved

JPMorgan Chase & Co.
JPMorgan Chase & Co.
Financial services company
Largest US bank by assets; reported Q3 earnings miss

The largest US bank by assets and the world's largest by market capitalization.
Goldman Sachs
Goldman Sachs
Investment bank
Beat Q3 estimates by 30%

A global investment bank known for trading and dealmaking.
Wells Fargo
Wells Fargo
Bank
Beat on profit, missed on revenue

A major US consumer and commercial bank.
Citigroup
Citigroup
US bank
Beat estimates but shares fell 5.6%

A global bank with large markets and consumer operations.
Bank of America
Bank of America
Bank
Reported Q3 with total trading revenue down 5%, bucking peers

A major US consumer and commercial bank that missed the trading boom.
Morgan Stanley
Morgan Stanley
Investment Bank
Beat Q3 estimates on equities surge and IPO-fueled wealth growth

A global bank whose equity desk and wealth business carried its third quarter.

Timeline

July 2026 October 2026

5 events Latest: October 14th, 2026 · 4 weeks ago
Tap a bar to jump to that date

  1. Bank of America posts weaker trading quarter

    Latest Earnings

    Sales and trading revenue fell 5% from a year earlier; fixed income dropped 17% and investment banking fees fell 11%.

  2. Morgan Stanley beats Q3 estimates on equities surge and wealth growth

    Earnings

    Equity trading revenue rose 41% and the wealth business got a lift from IPOs; fixed-income trading fell 7%.

  3. Big US banks report mixed Q3 earnings

    Earnings

    JPMorgan missed for first time since Q4 2023; Goldman beat by 30%.

  4. Federal Reserve hikes rates for first time since 2023

    Policy

    The Fed raised its benchmark rate with signals of more tightening possible.

  5. Big banks report strong Q2 earnings

    Earnings

    Trading revenue peaked in Q2 before cooling in Q3.

Scenarios

1

Trading boom fades as Q4 volumes cool

Possible Resolves by Jan 31, 2027

Discussed by: FinancialMarkets.com, which noted trading revenue fell 15-17% from Q2 at the three banks

Trading revenue already fell from Q2 to Q3 at all three banks. If that trend continues, equities desks normalize and banks lean on lending and investment banking. JPMorgan says its deal pipeline is strong, which could cushion the blow.

2

Equities momentum carries into Q4

Possible Resolves by Jan 31, 2027

Discussed by: Investing.com and CNBC, which noted Goldman's 30% beat and strong equities demand

Goldman's 72% equities jump and JPMorgan's 49% surge suggest structural demand for prime brokerage and derivatives. If market volatility persists, trading desks keep printing and banks beat again.

3

Consumer credit deterioration hits loan-loss reserves

Unlikely Resolves by Jan 31, 2027

Discussed by: AP News and Forbes, which noted two banks added to reserves for future losses

Two banks added to reserves for future losses in Q3. If inflation and higher rates squeeze borrowers, loan-loss provisions rise and eat into profits. Wells Fargo's capital ratio already fell on unrealized bond losses.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

January-March 2021

Pandemic trading boom (Q1 2021)

Retail investors piled into meme stocks like GameStop, driving volatility and record trading revenue at major banks. Goldman and JPMorgan both posted their best trading quarters in years.

Then

Banks reported record quarterly trading revenue.

Now

Revenue normalized as volatility faded in later quarters.

Why this matters now

Shows how a trading boom can inflate bank profits, then reverse when markets calm.

March 2023

Silicon Valley Bank collapse (March 2023)

The Federal Reserve's rapid rate hikes caused bond losses that brought down Silicon Valley Bank, the largest bank failure since 2008. Signature Bank failed days later.

Then

Regulators seized both banks and guaranteed all deposits.

Now

The episode showed how rising rates can stress banks even when the economy looks solid.

Why this matters now

Today's banks face a similar dynamic: the Fed hiked rates in September 2026, and rising rates are already cutting into capital ratios.

Sources

(15)
+9
AP News CNBC SEC EDGAR Forbes Investing.com The Financial Current FinancialMarkets.com Quartz KSL.com Invested Alpha The Desk Reuters via Investing.com Reuters 24/7 Wall St. CNBC