Major U.S. banks opened the third-quarter 2025 earnings season with results surpassing Wall Street expectations. JPMorgan Chase posted a 12% profit increase to $14.39 billion, with earnings per share of $5.07, beating the $4.85 forecast. Revenue climbed 9% to $47.12 billion, with record trading revenue of $9 billion benefitting from volatile market conditions. Goldman Sachs saw profits jump 37% to $4.1 billion on record revenues of $15.18 billion, with notable growth of 42% in investment banking fees to $2.66 billion. Wells Fargo delivered earnings of $1.66 per share on revenue of $21.44 billion, topping the chart with its stock up over 7%. Citigroup reported 16% profit growth to $3.8 billion, with gains across all divisions.

The strong performance signals a fundamental shift in bank profit drivers. Investment banking and trading have emerged as primary growth engines after years of subdued dealmaking activity. Goldman's debt underwriting rose 30%, while Wells Fargo's investment banking income increased 25%. JPMorgan raised its full-year net interest income forecast to $95.8 billion, balancing traditional banking with robust asset management and payments revenue.

Analysts expect Bank of America to report earnings of 95 cents per share on $27.5 billion in revenue when it releases earnings alongside Morgan Stanley. Optimism runs low, however, with bank CEOs warned that markets may have reached "bubble territory", citing interest rate uncertainty and deteriorating credit quality.

Sources: Reuters, Investing, WSJ
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