Big banks: trading lifts results
Goldman Sachs reported stronger-than-expected first-quarter revenue and earnings — about $17.23 billion in net revenue and $5.63 billion in net earnings — driven largely by record equities trading. (finance.yahoo.com) JPMorgan also posted higher first-quarter profit with trading gains, reporting net income of roughly $16.5 billion in a recent regulatory filing. (reuters.com) Analysts noted that some headline beats masked weaker net interest income and higher credit-loss provisions. (seekingalpha.com)
Wall Street’s biggest banks opened earnings season with a familiar split: trading desks surged, while core lending showed more strain. (goldmansachs.com) Goldman Sachs said on April 13 that first-quarter net revenue rose to $17.23 billion and net earnings reached $5.63 billion, up from $14.12 a share a year earlier to $17.55 a share. Its Global Banking & Markets unit generated $12.74 billion of revenue, including $5.33 billion from equities, up 27% from a year earlier. (goldmansachs.com) JPMorgan Chase said on April 14 that first-quarter net income rose to $16.5 billion, or $5.94 a share, on reported revenue of $49.8 billion. Its markets revenue climbed 20% from a year earlier to a record $11.6 billion, with fixed-income markets up 21% and equity markets up 17%. (jpmorganchase.com) The pattern shows how market volatility can lift bank results even when traditional banking is less dependable. Trading revenue comes from clients buying, selling, and hedging securities, while net interest income depends more on the spread between what banks earn on loans and pay on deposits. (cnbc.com) At Goldman, the strongest business was equities trading and financing, which benefited from heavier client activity in cash products and prime financing. Fixed income, currency, and commodities revenue moved the other way, falling 10% from a year earlier to $4.01 billion. (goldmansachs.com) At JPMorgan, investment-banking fees rose 28% from a year earlier, adding to the lift from markets. Jamie Dimon said the bank’s corporate and investment bank revenue grew 19% in the quarter. (jpmorganchase.com) The weaker pieces were less visible in the headlines. Goldman’s provision for credit losses was $315 million, up from $287 million a year earlier, and the bank said the increase mainly reflected growth and impairments tied to wholesale loans. (goldmansachs.com) JPMorgan also booked $2.5 billion of credit costs, including $2.3 billion of net charge-offs and a $191 million net reserve build. On the same day, CNBC reported that JPMorgan lowered its full-year 2026 net interest income guidance to about $103 billion from $104.5 billion. (jpmorganchase.com) (cnbc.com) That leaves investors with two readings of the same quarter. The trading businesses are showing that client activity remains strong, but the lending businesses are still carrying the pressure of lower rate expectations, tighter margins, and higher loss reserves. (deloitte.com) (imf.org) For now, the first-quarter scorecard is clear: the trading floors did the heavy lifting. The next bank reports will show whether that was a one-quarter burst of volatility or the main earnings engine for the industry in 2026. (goldmansachs.com) (jpmorganchase.com)
