Wall Street Banks Poised for Strong Q4 as Dealmaking and Trading Revenues Surge

The largest U.S. banks are expected to post higher fourth-quarter profits next week, buoyed by a resurgence in investment banking and trading activity as mergers and acquisitions accelerate. JPMorgan Chase will open earnings season on Jan. 13, followed by Citigroup, Bank of America and Wells Fargo on Jan. 14, and Goldman Sachs and Morgan Stanley on Jan. 15. Analysts say improving IPO momentum, robust M&A pipelines and elevated commodities, fixed income and equities trading helped fuel revenue growth across the sector.

Global investment banking revenue climbed 15% year-on-year to nearly $103 billion in 2025, according to Dealogic, with JPMorgan leading overall rankings and Goldman Sachs topping M&A advisory. Analysts also expect banks to benefit from broader loan growth and stronger net interest margins amid a pro-growth policy environment, lighter regulations and lower rate expectations. While cooling labor markets could increase consumer delinquencies, analysts believe any impact on bank performance will be limited given continued economic resilience.

Across individual lenders, JPMorgan is forecast to post modest EPS growth on solid investment banking and markets revenue, while Bank of America and Citigroup are expected to report sharper earnings gains driven by higher net interest income and capital markets activity. Wells Fargo is projected to deliver stronger profits as it expands investment banking following the removal of its asset cap, Morgan Stanley is seen benefiting from wealth and dealmaking momentum, and Goldman Sachs may face a slight profit decline after last year’s surge despite healthy advisory fees.

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