Banks show a split earnings picture
Recent quarterly reports highlight strong trading results while dealmaking remains fragile, with Bank of America and Morgan Stanley both reporting higher trading revenues as equities and fixed‑income activity picked up (reuters.com). Reuters and CNBC frame the quarter as a 'split picture' where volatility helped trading desks but left advisory pipelines and forward visibility uneven (reuters.com).
Big United States banks are reporting a two-track quarter: trading desks surged, while executives stayed cautious on how long the deal rebound will last. (reuters.com) Bank of America said first-quarter net income rose to $8.6 billion, or $1.11 a share, on $30.3 billion in revenue for the quarter ended March 31, 2026. Its investor relations page said revenue rose 7% and earnings per share rose 25% from a year earlier. (bankofamerica.com, bankofamerica.com) Reuters reported Bank of America was lifted by record equities trading and higher investment banking fees, while CNBC said the bank beat Wall Street estimates for a 23rd straight quarter. Chief executive Brian Moynihan said consumer banking remained “healthy.” (reuters.com, cnbc.com) Morgan Stanley reported net revenue of $20.6 billion and earnings of $3.43 a share, up from $17.7 billion and $2.60 a year earlier. Its Institutional Securities division posted record revenue of $10.7 billion, including $5.1 billion in equities, $3.4 billion in fixed income and $2.1 billion in investment banking. (morganstanley.com) Reuters said Morgan Stanley’s results beat expectations as its equities trading business set a record and dealmaking improved. Ted Pick, the bank’s chief executive, called it a “record quarter” in the earnings release. (reuters.com, morganstanley.com) The same pattern showed up across rivals. JPMorgan Chase said Markets revenue reached a record $11.6 billion and investment banking fees rose 28%, while Citigroup said first-quarter revenue rose to $24.6 billion and Markets revenue topped $7 billion for the first time in a decade. (jpmorganchase.com, citigroup.com) Goldman Sachs also got a lift from stock trading and advisory work. CNBC reported record equities revenue of $5.33 billion, a 48% jump in investment banking fees to $2.84 billion, and a 10% drop in fixed-income revenue to $4.01 billion. (cnbc.com) Reuters said the quarter was shaped by a selloff in technology stocks, fears around private credit and war-linked volatility in the Middle East. That turbulence drove client activity in equities, fixed income and commodities, but it also made banks less willing to give bullish forecasts on mergers and stock offerings. (reuters.com) Reuters said several large deals and a planned SpaceX initial public offering had raised hopes that 2026 would finally bring a broader rebound in advisory fees. Analysts told Reuters that path now looks uneven if the conflict and peace talks in the Middle East keep shifting market conditions. (reuters.com) Banks also used the quarter to signal caution on lending and credit. Reuters said interest income rose as loan demand improved, but softer labor-market signals, uncertainty around the Federal Reserve’s rate path and scrutiny of private-credit exposure are keeping executives guarded even after the trading windfall. (reuters.com)
