Business · Companies · 2 hrs ago
AI boom lifts profits at four major US banks
AI investment is boosting major US banks through fees from financing, mergers and acquisitions, and company listings.
JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup all reported higher profits for the third quarter.
Their combined profit topped $30 billion, about 15% more than a year earlier, while their combined revenue rose 11% to more than $113 billion.
The banks are also gaining wealth-management customers among employees and early investors whose assets grew when companies went public.
AI-related fees are forecast to reach $8.5 billion this year across the banks.
Bank of America was an exception, with profit falling because of large fines for regulatory violations.
Four major US banks reported higher third-quarter net income, helped by investment in artificial intelligence.
JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup together earned more than $30 billion, up about 15% from a year earlier.
Their combined revenue rose 11% to more than $113 billion.
AI-related financing, mergers and acquisitions, and initial public offerings increased fee income, while some people who gained wealth from listings became wealth-management clients.
Bank of America’s net income fell, which the article attributed to a large fine for regulatory violations.
- Who
- JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup.
- What
- The four banks reported higher third-quarter net income, with combined earnings above $30 billion.
- When
- They reported results this week; the article cites October 15.
- Where
- The United States.
- Why
- Investment in AI-related companies and activity boosted financing, M&A and IPO fees, as well as wealth-management business.
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- Banks
- JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup
- Combined third-quarter net income
- More than $30 billion
- Year-on-year net income growth
- About 15%
- Combined revenue
- More than $113 billion, up 11%
- AI-related fees
- Forecast at $8.5 billion this year
- Bank of America
- Net income fell amid a large fine for regulatory violations