Banks' trading surge

Wall Street’s biggest banks got a first-quarter boost from the same market swings that rattled investors, with JPMorgan Chase and Citigroup both reporting sharply higher profits on April 14. (reuters.com) JPMorgan said net income rose to $16.5 billion, or $5.94 a share, in the three months ended March 31, up from $14.6 billion, or $5.07 a share, a year earlier. The bank reported markets revenue of $11.6 billion, up 20%, and said investment-banking fees also increased. (jpmorganchase.com) Citigroup reported first-quarter net income of $5.8 billion, or $3.06 a share, on revenue of $24.6 billion. Citi Chair and Chief Executive Officer Jane Fraser said revenue rose 14%, while the bank’s trading desks and investment bankers benefited from volatile markets and stronger deal activity. (citigroup.com) Trading revenue rises when clients buy and sell more stocks, bonds, currencies and commodities, and banks collect fees and spreads from handling those trades. That business tends to jump when headlines on tariffs, interest rates or geopolitics push investors to reposition quickly. (reuters.com) The same quarter also brought a pickup in dealmaking, which matters because investment banking had been weak for much of the past two years as high borrowing costs and uncertainty delayed mergers and stock offerings. JPMorgan said higher investment-banking fees helped lift results, and Citi said banking fees rose alongside trading revenue. (jpmorganchase.com) (citigroup.com) JPMorgan’s results showed how broad that strength was. The bank posted reported revenue of $49.8 billion, managed revenue of $50.5 billion, and a return on tangible common equity of 23%, while Chief Executive Officer Jamie Dimon said the United States economy remained resilient during the quarter. (jpmorganchase.com) Citi’s numbers pointed to a similar pattern, but from a smaller base. Its earnings per share increased from $1.96 a year earlier, and the bank said the gain reflected both higher net income and a lower share count after stock repurchases. (citigroup.com) These reports are among the first major bank earnings of the quarter, so investors use them as an early read on trading activity, corporate confidence and consumer strength. On April 14, both banks said clients were still active enough to turn market turbulence into revenue rather than a drag on results. (reuters.com 1) (reuters.com 2) The next test is whether that strength lasts beyond one volatile quarter. For now, the opening numbers from April 14 show that big-bank trading floors and deal teams started 2026 with more momentum than many investors expected. (reuters.com 1) (reuters.com 2)