NEW YORK (AP) — Wall Street had one of the most profitable quarters in its history, if you believe the earnings reported Tuesday by four of the nation’s largest banks; as banks were helped by a flurry of deals, skyrocketing stock prices and a global economy that remains resilient despite tariffs and geopolitical turmoil.
Despite strong earnings from JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs, banking executives expressed varying degrees of caution about the markets and the economy, including concerns that asset prices in some markets have become too inflated.
“While there have been some signs of weakening, particularly in job growth, the overall U.S. economy has remained resilient,” Jamie Dimon, chairman and CEO of JPMorgan Chase, said in prepared remarks.
“However, there remains a greater degree of uncertainty derived from complex geopolitical conditions, rates and trade uncertainty, elevated asset prices and the risk of persistent inflation,” he added.
JPMorgan Chase said it posted a profit of $14.39 billion, or $5.07 per share, up 12% from a year earlier. The other large banks did the same or better. Wells Fargo made $5.59 billion in profits in the quarter, up 9% from a year earlier. At Citigroup, the bank posted a third-quarter profit of $3.75 billion, up 16%, and Goldman Sachs posted a 37% rise in profits, earning $4.1 billion.
JPMorgan’s consumer banking division had a particularly strong quarter, driven in part by its credit card business. The bank has seen consumers spend more, borrow more and be willing to carry a balance on their cards for longer. The bank also updated its Chase Sapphire Reserve card this summer, kicking off a summer of upgrades by major credit card companies to keep customers spending on the banks’ high-fee cards.
Along with a consumer that seems resilient, Wall Street is having one of its best years for deals in a long time. Initial public offerings are back and several major companies are set to go public this year. Silicon Valley, particularly artificial intelligence companies, have raised tens of billions of dollars in cash to boost data center construction. And private equity is also doing well, particularly the $55 billion takeover bid for video game giant Electronic Arts announced last month.
At Goldman Sachs, investment banking revenue rose 42% to $2.66 billion, and commission and fee income rose 27%, driven by the flurry of M&A deals in which Goldman bankers advised companies. Citigroup and JPMorgan also saw significant increases in investment banking and corporate lending revenue.