Goldman Sachs’ equities traders smashed expectations in the third quarter, helping insulate the bank from a decline in fixed income across Wall Street. Both JPMorgan Chase and Goldman announced unexpected declines in fixed income trading when they reported results on Tuesday. But at Goldman the performance of its stock traders meant that it still reported net income of $5.3bn, almost 30 per cent higher than last year.
At JPMorgan meanwhile, the weakness in fixed income contributed to a far smaller rise in profits of just 6 per cent to $15.3bn, below forecasts. On a busy day on Wall Street, Citigroup bucked the trend to report a rise in fixed income revenue, as its profits rose 40 per cent year on year. JPMorgan Chase chief executive Jamie Dimon said the US economy continues “to be fuelled by strong business investment and ongoing consumer spending”.
But he also warned of potential risks, including “large fiscal deficits, sticky inflation” and “rising interest rates”. Bank of America and Morgan Stanley report on Wednesday. Follow the FT’s live coverage for updates and analysis.
Source: Financial Times Companies · Summarized by HeadlinesBriefing