Goldman Sachs led the charge with a 22% jump in earnings to $3.7 billion, fuelled by a record-breaking quarter in equities trading, which surged 36%. Investment banking fees rose 26%, driven by a rebound in M&A advisory activity.
CEO David Solomon struck an optimistic tone, calling the deal-making environment “remarkably resilient” and expressing confidence in the investment banking outlook. Still, he cautioned that policy developments rarely unfold in a straight line, underscoring the importance of risk management.
Morgan Stanley also posted impressive results, with net income rising to $3.5 billion, or $2.13 per share, beating analyst estimates of $1.96. Revenue climbed to $16.8 billion, supported by a 23% rise in equities trading and a 9% increase in fixed income. Institutional Securities revenue hit $7.6 billion.
However, investment banking lagged, with advisory revenue falling to $508 million due to fewer completed M&A deals. CFO Sharon Yeshaya attributed the slowdown to tariff-related uncertainty but noted improving conditions. CEO Ted Pick highlighted a rebound in capital markets in the latter half of the quarter.
Bank of America rounded out the trio with solid earnings, reporting $0.89 per share versus the expected $0.86. Net interest income reached $14.67 billion, and trading revenue adjusted for Debit Value Adjustment (DVA) came in at $5.38 billion, both beating forecasts.
Total revenue rose 4% year-over-year to $26.61 billion, just shy of expectations. Despite trimming its stake in 2024 and early 2025, Warren Buffett’s Berkshire Hathaway continues to hold a significant position in the bank, valued at around $29 billion.
With inputs from agencies
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(Edited by : Ajay Vaishnav)
First Published: Jul 16, 2025 9:46 PM IST
