Business · Companies · 9 hrs ago
US banks remain profitable as earnings growth slows
Most major US banks posted solid results, although their earnings are growing more slowly.
The results covered large lenders including Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Wells Fargo and Bank of America.
Goldman Sachs and Morgan Stanley had the strongest results, while other banks reported mixed performances and Bank of America faced weaknesses in some businesses and regulatory challenges.
Revenue linked to artificial intelligence deals and trading helped banks, while wealth management also benefited from new money flowing in after company share listings.
US households and businesses are still borrowing, and the banks’ results point to continued strength in the economy despite high interest rates.
So far, the figures do not show broad deterioration in loan quality, but slower growth and weaker bond trading call for caution.
Banks still need to show that rising customer assets can produce lasting profits.
US banks remain profitable, but earnings growth is slowing, bond trading is weaker and credit tensions are emerging.
Most major Wall Street banks reported better-than-expected results, though some disappointed.
Goldman Sachs and Morgan Stanley had the strongest results, while JPMorgan and Wells Fargo were more mixed.
Artificial intelligence-related deals and trading contributed to bank revenues during 2026.
US banks reported resilient credit demand, with no general deterioration in credit quality described.
- Who
- Major US banks, including Goldman Sachs, Morgan Stanley, JPMorgan, Citigroup, Wells Fargo and Bank of America.
- What
- The banks remain profitable, but earnings growth is slowing amid weaker bond trading and credit tensions.
- When
- During the US corporate earnings season in 2026. The article was published on October 27, 2026.
- Where
- The United States.
- Why
- Banks benefited from activity linked to artificial intelligence, wealth management and resilient credit demand, while weaker trading and credit concerns tempered results.
This story does not have two clearly opposing sides.
Investment banks earned significant fees from artificial intelligence-related deals, including SpaceX’s IPO and SK Hynix’s share offering.
Just over half of Morgan Stanley’s $148 billion in new net assets was linked to IPOs of companies whose employees used its Workplace channel.
Morgan Stanley’s wealth management business recorded revenue of $9.1 billion.
- Banks
- Goldman Sachs and Morgan Stanley had the most convincing results
- Morgan Stanley new net assets
- $148 billion in the second quarter
- Morgan Stanley wealth management revenue
- $9.1 billion in the third quarter
- JPMorgan loan-loss provisions
- Down 19%
- AI-related deals
- SpaceX IPO and SK Hynix share offering
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What people are saying
Goldman and Morgan Stanley are also at the forefront of Anthropic’s upcoming listing.
I believe so, if equity markets hold current levels.
An expansion that testifies to the resilience of credit demand from households and businesses, consistent with an economy that continues to benefit from robust consumption and sustained business investment.