The bank posted profit of $3.06 per share for the quarter ended March 31, beating analyst estimates of $2.65. Shares rose 1.4% in premarket trading following the results.
Revenue for the quarter stood at $24.6 billion, the highest in a decade, as total markets revenue rose 19% year-on-year to $7.2 billion. Trading desks benefited from increased volatility across asset classes, driven by geopolitical tensions in the Middle East and sharp market moves.
Equity markets revenue rose 39%, supported by growth in derivatives, prime services and cash equities, while fixed income trading revenue increased 13%, led by strong performance in commodities.
Investment banking also remained firm, with banking division revenue rising 15%. Fees from equity underwriting jumped 64%, while mergers and acquisitions advisory fees increased 19%, although fixed income underwriting declined 6%.
Net interest income rose 12%, while the wealth and retail banking division recorded 11% revenue growth.
Chief Executive Officer Jane Fraser said the bank remains on track to deliver its full-year return on tangible common equity target of 10–11%. She added that the firm has entered the final phase of its restructuring, with most transformation programmes nearing completion.
Expenses rose 7% during the quarter, partly due to higher compensation and severance costs as the bank continued workforce reductions as part of its overhaul strategy.
