Wall Street’s revival is solidifying after Q3 reports from Bank of America, Citigroup and Goldman Sachs

Bank of America Corporation (NYSE: BAC), Citigroup Inc (NYSE: C) and The Goldman Sachs Group Inc (NYSE: GS) were the latest to report better-than-expected quarterly earnings and beat dismal forecasts, as did their banking peers Wells Fargo & Company (NYSE: WFC) and JPMorgan Chase & Co (NYSE: JPM) did so last Friday.

Morgan Stanley is cementing deal recovery with an uptick in investment banking.

Net sales rose 16% to $15.4 billion. Fixed income and equity trading revenue rose 13% to $5 billion. Investment banking fee revenue actually rose 56% year over year to nearly $1.4 billion, with Morgan Stanley making the biggest jump among the big banks, with JPMorgan Chase, Wells Fargo, Goldman Sachs, Bank of America and Citigroup also Stock and investment banking fees recorded an increase in revenue.

Asset management net new assets rose 79% year-over-year and 76% quarter-over-quarter to $64 billion, while revenue rose 13.5% year-over-year to $7.3 billion.

As investment banking picked up and trading increased, net income rose 32% year-on-year to $3.2 billion.

Citigroup’s profit was hit by loan losses, but profit beat estimates.

Citigroup reported strong third-quarter results, driven by the same trend as Morgan Stanley: growth in investment banking and wealth management. However, Morgan Stanley has also set aside more money to cover possible loan defaults. In the third quarter, Citigroup reported that revenue rose just 1% year over year to $20.32 billion, but was still above the LSEG estimate of $19.84 billion. Banking revenues rose 18%, investment banking revenues rose 31%, while asset revenues rose 9%. Equity market revenues rose 32%, while fixed income revenues fell 6%. Determined to get the transformation right, Citigroup cut spending 2% year over year as the company remains on track to reach its full-year spending target of between $53.5 billion and $53.8 billion achieve, without taking into account some regulatory costs.

Earnings per share of $1.51 beat LSEG’s consensus estimate of $1.31, but net income fell to $3.2 billion due to higher credit costs.

Goldman Sachs sees a jump in profits with a stable economy.

Goldman Sachs beat both revenue and profit estimates with its third-quarter results. Third-quarter revenue rose 7% to $12.70 billion, beating the LSEG estimate of $11.8 billion. Profit rose 45% year over year to $2.99 ​​billion, or $8.40 per share, also beating LSEG’s consensus estimate of $6.89 per share. Investment banking revenue rose 20% to $1.87 billion, followed by equity trading. Revenue rose 18% to $3.5 billion. The wealth and asset management division reported a 16% increase as revenue rose to $3.75 billion. On the other hand, fixed income trading revenue fell 12% year-on-year to $2.96 billion.

The story continues

Bank of America, Morgan Stanley and Citigroup continued last week’s trend set by reports from JPMorgan Chase and Wells Fargo, as the major banks reported a strong third quarter in a constructive and undoubtedly improving macroeconomic environment.

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