Goldman beats on trading strength

Goldman Sachs reported third-quarter profit of $5.29 billion, or $17.01 per share, for the three months ended 30 September, against $4.10 billion, or $12.25 per share, a year earlier. Estimates compiled by LSEG had pointed to $13.02 per share. The equities business posted a 72% jump in quarterly revenue to $6.44 billion, while fixed income, currency and commodities revenue came in at $3.47 billion, down 1% from a year ago. Investment banking fees rose 21% from a year ago to $3.22 billion, and advisory revenue, up 18%, was a record for the investment bank. Goldman shares were up 3.8% before the bell on Tuesday, 13 October. CEO David Solomon said in a statement:

Notwithstanding the current complexity and uncertainty in the world, we remain very well positioned to continue to deliver for our clients.

JPMorgan profit rises as shares slip

JPMorgan Chase posted third-quarter net income of $15.3 billion, or $5.57 per share, compared with $14.4 billion, or $5.07 per share, a year earlier. Its shares fell about 3% in premarket trading and closed 0.9% lower. Il Messaggero reported that per-share earnings fell short of the $5.85 that analysts polled by LSEG had expected, which would be the bank's first earnings miss since late 2023. Investment banking fees fell 8% from the second quarter but rose 14% from a year earlier, and revenue in the markets division climbed 15%. Net interest income, excluding markets, rose 6% to $24.7 billion, and average loans rose 10% year on year. CEO Jamie Dimon said in a statement:

Investment banking fees each rose at a mid-teens rate, helped by strong levels of client activity, although activity did moderate somewhat during the quarter.

Dealmaking slowed in late September

Third-quarter M&A activity fell 41% from the prior three months to $993 billion, according to LSEG data, dropping below $1 trillion for the first time since the second quarter of 2025. The IPO market lost momentum in recent weeks after a strong start to the year, and analysts say it is selective rather than shut. The Federal Reserve raised interest rates in September for the first time since 2023, while the bond market suffered one of its worst selloffs in recent memory, pushing global yields to levels not seen since early in the century. JPMorgan CFO Jeremy Barnum said on a call with reporters:

I think all the overall conditions for the investment banking pipeline remain very, very strong.

Barnum added that the slowdown in the second half of September could flow into the fourth quarter, and that he would lean toward deals being delayed rather than canceled. Citigroup CFO Gonzalo Luchetti said the bank saw softer investment banking activity in the third quarter after record first-half volumes. Wells Fargo CFO Mike Santomassimo said trading activity across clients slowed meaningfully in the last few weeks of September, pointing to the big jump in the 10-year yield.

Citigroup and Wells Fargo miss, shares fall

Citigroup's third-quarter revenue reached $23.8 billion, the highest third-quarter total of the past ten years according to Il Messaggero, with earnings of $2.85 per share above estimates. Wells Fargo's profit rose 6.5% to $5.95 billion and beat forecasts on earnings, but its revenue rose 2% to $21.9 billion against the $22.3 billion expected. Citigroup shares closed 5.6% lower and Wells Fargo shares closed 3.1% lower on 13 October. The Dow Jones fell 0.35%, the Nasdaq lost 0.15% and the S&P 500 dropped 0.02%. Chip stocks weighed on the session after the Chinese chipmaker CXMT reported progress on a memory chip platform, and Il Messaggero reported that Micron lost 5% after the Seoul market fell more than 5%.

Dimon on rates and the economy

Dimon described an economy still supported by business investment and consumer spending, but warned that conditions would get harder if interest rates rose further. ANSA reported that he told CNBC moving from 5% to 6% would be more painful than moving from 4% to 5%, because borrowers would have to pay more and refinance at higher rates, with credit spreads possibly widening slightly. ANSA put the 10-year Treasury yield at about 5.3% at the end of September, up from about 4% six months earlier, while Il Messaggero gave 5.2% as the current level. His statement also flagged large fiscal deficits, persistent inflation, high asset prices, rising interest rates and shifting geopolitical conditions, though he said JPMorgan remained prepared for a wide range of scenarios.