<\/p>\n
Robust trading activity amid high market volatility boosts banks\u2019 earnings.<\/p>\n
Driven by strong trading revenue that benefited from market volatility, the big Wall Street banks posted strong second quarter results, Moody\u2019s Ratings reports.<\/p>\n
The large U.S.-based global investment banks \u2014 Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo \u2014 reported stronger earnings in the quarter, underpinned by \u201cvery strong\u201d trading revenue and relative stability in the other major aspects of their businesses.<\/p>\n
\u201cTrading revenue rose 17% in aggregate from a year ago and accounted for one-quarter of the group\u2019s net revenue, buoyed by high market volatility in the first part of the second quarter and good client flows as the quarter progressed,\u201d Moody\u2019s reported.<\/p>\n
Apart from Wells Fargo, the firms all generated a double-digit increase in trading revenues, \u201cwith some firms pointing to strong performance in macro products such as currencies and rates,\u201d the rating agency noted.<\/p>\n
At Citi, Goldman Sachs and Morgan Stanley, equities trading revenue was also \u201cparticularly robust,\u201d Moody\u2019s said, with each of these firms posting year-over-year growth of at least 20%.<\/p>\n
At the same time, the results from their investment banking businesses were mixed, as the rise in uncertainty amid erratic U.S. trade policy subdued activity. Nevertheless, aggregate investment banking revenue rose by 6% in the quarter, despite declines at Bank of America and Morgan Stanley, the rating agency noted.<\/p>\n
\u201cDebt underwriting results were soft in Q2, with heightened volatility hindering some activity and all except JP Morgan reporting lower year-over-year revenue,\u201d it said. \u201cEquity underwriting was mixed, with year-over-year revenue growth at Citi and Morgan Stanley but declines at Bank of America and JP Morgan.\u201d<\/p>\n
There were also wide disparities in advisory revenue, the report noted, with Citi and Goldman Sachs \u201csubstantially outperforming\u201d the rest of the big banks.<\/p>\n
\u201cWealth and investment management earnings were steady to improving, aided by good client inflows and rising market values,\u201d Moody\u2019s also noted.<\/p>\n
Additionally, net interest income improved at several of the Wall Street giants, driven by \u201ccontinued loan and deposit growth.\u201d And, the banks\u2019 loan loss reserves were little changed for most of the group, \u201cas economic uncertainty abated somewhat and consumer credit metrics remained favourable.\u201d<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Robust trading activity amid high market volatility boosts banks\u2019 earnings. Driven by strong trading revenue that benefited from market volatility, the big Wall Street banks posted strong second quarter results, Moody\u2019s Ratings reports. The large U.S.-based global investment banks \u2014 Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo \u2014 reported […]<\/p>\n","protected":false},"author":1,"featured_media":4532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/07\/Wall-Street-4-840x445.jpeg",840,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/07\/Wall-Street-4-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/07\/Wall-Street-4-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/07\/Wall-Street-4.jpeg",840,560,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=4531"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4531\/revisions"}],"predecessor-version":[{"id":4533,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4531\/revisions\/4533"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/4532"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=4531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=4531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=4531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}