Goldman Sachs, JPMorgan Chase and Citigroup have reported bumper profits across their Wall Street divisions, even as they warned that investor exuberance risked driving a recent run up in financial markets into bubble territory.
The three banks reported quarterly earnings on Tuesday that comfortably beat analysts’ estimates, with the resumption of dealmaking lifting investment banking revenues and continued volatility in financial markets boosting trading income.
JPMorgan’s net income increased by 12 per cent from the same quarter a year earlier to $14.3bn, while at Goldman — the bank whose business is most heavily geared towards investment banking and trading — net earnings rose 37 per cent to $4.1bn. Citi’s net income increased by 18 per cent to $3.5bn.