Wall Street Reports its Quarterly Earnings

Ethan Digiacomo
Staff Writer

 

Wall Street Reports its Quarterly Earnings

Recent earnings reports for major financial institutions have provided critical insights into the health of the financial sector amid evolving economic conditions. This quarter saw a mix of robust performances and cautious outlooks, influenced by factors such as consumer spending patterns, interest rate expectations, and geopolitical developments.​ 

Majority of banks have exceeded analysts’ estimates for Earnings Per Share (EPS) and Revenue. This was partially due to the volatility in capital markets that banks including JPMorgan, Morgan Stanley, and Goldman Sachs capitalized on to generate high fees in sales & trading. Banks also reported strong credit trends, heatlhy capital levels, and high liquidity. However, the IPO market has slowed down due to heightened volatility. Debt Capital Markets (DCM) have held strong for the first couple of months of the year, but have also recently slowed down. If there is resilience in the markets combined with less volatility, there could be lower revenue that’s offset by a pickup of activity in the mergers and acquisitions or advisory (M&A) and Equity Capital Market (ECM). But right now, the uncertainty and volatility are weighing on the advisory and ECM business.  If a recession was to occur within the next year, it would be negative for banks, credit losses would increase, and stocks, including financial services, would suffer. Consequently, in the case of slow growth or mild recession, banks will be able to navigate more easily than in a full-blown recession. 

 

Below is the summary of earnings of major U.S. financial services companies.

JPMorgan Chase

JPMorgan Chase reported a net income of $14.6 billion and EPS of $5.07, with revenues of $46 billion, reflecting an 8% year-over-year increase. JPMorgan was able to beat market estimates both in terms of revenue and EPS. Jamie Dimon, CEO and chairman of JPMorgan, wrote in his annual letter to shareholders this week that he expected that Trump administration’s tariffs “will slow down growth.”

 

BlackRock

BlackRock reported a 12% year-over-year increase in revenue, reaching $5.3 billion, and a 15% rise in earnings per share (EPS) to $11.30. In a statement announcing the results, BlackRock chief executive Larry Fink wrote that the markets had entered an unsettling period: “Uncertainty and anxiety about the future of markets and the economy are dominating client conversations.” 

 

Morgan Stanley 

Morgan Stanley reported record revenues of $17.7 billion and EPS of $2.60. This marks a continuation of strong financial performance over the past five quarters. Equity trading showed the most improvement this quarter, as revenue jumped 45% to $4.13 billion. Morgan Stanley said that its equity results were “driven by strong client activity amid a more volatile trading environment.”

 

Wells Fargo 

Wells Fargo had lower-than-expected quarterly revenue and a decline in net interest income. It reported an adjusted EPS of $1.33, but more importantly, it reported a quarterly revenue of $20.15 billion, versus an expected $20.75 billion. Revenue fell 3% from $20.86 billion in the same quarter last year. Net interest income, a key measure of what a bank earns on loans, fell 6% year-over-year to $11.50 billion. CEO Charlie Scharf highlighted the uncertainty in the economy brought on by the Trump administration’s actions to reorient global trade, calling for a timely resolution, “We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions.”

 

Goldman Sachs

Goldman had its third-best quarter ever, and it was able to beat estimates. The firm reported EPS that rose 22% year-over-year to $14.12 on revenue of $15.06 billion, while analysts expected $12.33 and $14.78 billion, respectively. Net interest income came in at $2.90 billion, below the $3.30 billion consensus. “While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients,” Goldman Sachs CEO David Solomon said.

 

Bank of America 

Bank of America had an EPS of $0.90 in the quarter on revenue of $27.4 billion, surpassing Wall Street expectations of an EPS of $0.82 on sales of $26.9 billion. This was the 12th consecutive quarter of year-over-year revenue growth. “Our business clients have been performing well, and consumers have shown resilience, continuing to spend and maintaining healthy credit quality,” CEO Brian Moynihan said in a release. “Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team’s relentless focus on responsible growth will remain a source of strength.”

 

Citigroup

Citigroup reported a jump in profit and revenue in the first quarter of 2025 that beat analysts’ expectations, thanks in part to market volatility that generated higher fees for its trading business.

The bank reported earnings per share of $1.96, compared to the analysts’ forecast of $1.85. Revenue was $21.6 billion, versus expectations of $21.26 billion. Profit was $4.06 billion, compared to $3.37 billion a year ago. Citigroup is the most globally dependent of the U.S. banks, with operations across the globe. CEO Jane Fraser said she is optimistic about the long-term trajectory of the American economy and that the bank is poised to manage through a reordering of global trade and supply chains.

 

BlackStone 

BlackStone reported an EPS of $1.09, compared with $0.98 a year earlier. Analysts had expected $1.05 per share, according to estimates. While Blackstone was able to beat estimates, on the back of strong performance from its private equity and credit businesses, CEO Stephen Schwarzman warned that heightened volatility may hamper asset sales in the near term. “Uncertainty around tariffs and their potential impact on economic growth and inflation has dramatically impacted investor sentiment,” said Schwarzman.

 

What Does This Mean For Investors 

Investors should exercise caution despite these impressive earnings. These impressive trading profits are a reflection of short-term volatility rather than long-term strength. Banks saw concerning trends in lending and dealmaking activity, which stood in stark contrast to the trading frenzy. As sluggish loan demand indicated growing prudence among consumers and businesses, Wells Fargo missed earnings projections. Due to corporations delaying M&As and IPOs due to economic uncertainties, Goldman Sachs experienced an 8% decline in investment banking revenue. Careful optimism was even expressed by banks that reported consumer resilience. Citigroup achieved record income in its personal banking sector but sharply raised loan-loss provisions to guard against potential economic instability, whereas Bank of America reported robust credit quality and a moderate 4% increase in consumer spending.

Investors should be reminded that even with short-term gains, long-term economic confidence is still fragile, as the collective caution expressed by nearly all of the big bank CEOs over broader macroeconomic trends like tariffs and their effects. The bank results for this quarter are a stark reminder that, beyond the surface of Wall Street, everything is seemingly alright; there are genuine economic concerns, wary customers, and companies that are hesitant to take significant risks. Investors would be well advised to use cautious, diversified methods to temper their enthusiasm over short-term gains as Trump’s trade policies continue to unnerve international markets. The conclusion drawn from the results of the major banks is straightforward: Wall Street’s record trading gains conceal more serious economic concerns. This entails investors remaining patient, diversified, and cautious as the market negotiates an unpredictable future.

 

Contact Ethan at Ethan.Digiacomo@student.shu.edu