Wall Street's biggest banks have capped off a tumultuous 2025 with a spectacular surge in trading revenue, driven by market volatility and a resurgence in deal-making. The latest round of earnings updates reveals a sector riding high, with Goldman Sachs leading the charge by setting a new benchmark for equities trading.
Goldman Sachs and Peers Post Record Numbers
Goldman Sachs emerged as the standout performer, pocketing a staggering $4.3bn in equities trading revenue in the final three months of the year. This figure marks a record high for any Wall Street bank. The firm's fixed income trading revenue, which deals in securities like government bonds, also saw a significant jump of 12.5 per cent to $3.1bn.
Dan Coatsworth, head of markets at AJ Bell, attributed the strong results to the year's conditions. "Market volatility and high levels of deal making in 2025 helped burnish Goldman Sachs’ earnings," he said. A bullish tone from chief executive David Solomon further boosted the stock, which has gained over 60 per cent in the last 12 months.
The boom was not isolated. Bank of America enjoyed a similar surge, with its equities trading revenue climbing 23 per cent to $2bn – approximately $160m higher than analysts had forecast. Its fixed income trading revenue saw a more modest increase of 1.5 per cent to $2.52bn, though this fell nearly $120m short of expectations.
Investment Banking Fuels Strong Quarter
Investment banking proved to be another robust area for the sector in the final quarter. Citigroup notched a two per cent revenue growth in this segment to $19.9bn, even as its overall profit slipped. Meanwhile, Morgan Stanley’s investment banking revenue soared by an impressive 47 per cent, reaching $2.41bn, buoyed by stronger advisory fees and increased merger and acquisition (M&A) activity.
JP Morgan Bucks the Trend with Profit Slip
Despite the buoyant numbers across the street, the juggernaut JP Morgan faced headwinds. Its stock took a hit on Tuesday 13th January 2026 after the bank reported a seven per cent drop in quarterly profit, which fell to $13bn.
The bank's woes stemmed from two main factors: it increased its financial cushion for sour loans to $4.7bn, up from $2.6bn the prior year, and it experienced softer investment banking revenue. Fees from investment banking fell five per cent in the quarter to $2.3bn, missing estimates by a substantial $120m.
Amid the earnings update, JP Morgan did announce a significant new venture: it will become the new issuer of the Apple Card, a move expected to bring over $20bn in card balances to its Chase platform. However, this news was overshadowed by the profit miss, causing shares to fall over four per cent and helping to drag down the wider S&P 500 index.
The bank's influential chief, Jamie Dimon, struck a cautionary note, warning that markets "seem to under-appreciate the potential hazards" facing the economy. He listed "complex geopolitical conditions, the risk of sticky inflation and elevated asset prices" as major warning signs on the economic landscape.
