News Digest: Banks deliver solid results on soft landing
October 18, 2024
News Digest:
Wall Street’s biggest banks staged a strong rebound in the third quarter, driven by renewed corporate confidence in issuing new debt and pursuing mergers. Some trading divisions also reported their best performances in years, underscoring optimism about a “soft landing” for the economy.
Goldman Sachs (GS) announced on Tuesday that its investment banking fees rose 20% compared to the same period last year. Bank of America (BAC) recorded its highest-ever third-quarter trading revenue, while Citigroup (C) reported its best trading performance for the quarter in more than a decade, with investment banking fees surging by 44%.
Bank executives expressed optimism that the Federal Reserve’s recent shift toward cutting interest rates—starting with a 50 basis point reduction last month—will encourage further deal-making. Goldman Sachs, Bank of America, Citigroup, and JPMorgan Chase (JPM) collectively earned $6.5 billion in investment banking fees, a 27% increase from the same period last year and a slight improvement from the previous quarter.
The combined trading revenue of these financial giants reached $23.4 billion, representing a 6% year-over-year increase, though it dipped 2% from the previous quarter.