Other US banks, Bank of America and Morgan Stanley, offered their enterprise figures for 2026 on Wednesday. Morgan Stanley shone. Like its rival Goldman Sachs, the funding financial institution benefited from booming mergers and acquisitions enterprise and rising securities buying and selling within the first quarter. As the financial institution introduced on Wednesday in New York, Morgan Stanley’s web revenue climbed by virtually a 3rd to $5.6 billion, surpassing that of its bigger rival Goldman Sachs. The return on fairness capital employed was 27.1 % at Morgan Stanley, and a very good 19.8 % at Goldman Sachs, measured towards the profitability of German banks.
In distinction to Goldman Sachs, no disappointment within the FICC enterprise
Morgan Stanley’s earnings rose to $20.6 billion within the first quarter of 2026 (similar quarter final yr: $17.7 billion), exceeding analysts’ expectations. Unlike the financial institution Goldman Sachs, which introduced an 18 % larger quarterly revenue of $5.4 billion on Monday, Morgan Stanley didn’t disappoint traders with the ends in the bonds, currencies and uncooked supplies enterprise. In this FICC enterprise, wherein Deutsche Bank is especially robust, Morgan Stanley earned $3.4 billion. It was stated that they benefited from the strongly fluctuating power costs.
Morgan Stanley earned much more with $5.1 billion (plus 25 %) within the fairness enterprise, due to extra advisory providers for IPOs and convertible bonds. In addition to this funding banking enterprise, wealth administration additionally delivered robust outcomes: a file $8.5 billion in income and a contribution of $2.6 billion to pre-tax income, primarily based on a really affordable pre-tax revenue margin of 30.4 %.
JP Morgan and Goldman Sachs with worth losses on Wall Street
The US banks JP Morgan and Citigroup had beforehand offered their quarterly figures on Tuesday. They additionally managed to extend income in comparison with the identical quarter final yr to $16.5 billion and $5.8 billion. However, like Goldman Sachs, they didn’t fairly meet the excessive expectations. US banks initially suffered worth losses on the inventory markets after the quarterly figures had been offered. At Morgan Stanley, traders had been initially unable to find any main weaknesses within the quarterly steadiness sheet.
This additionally applies to the second financial institution that offered quarterly figures on Wednesday: Bank of America (Bofa) additionally benefited from a surprisingly robust funding banking enterprise. Its web revenue rose 16 % from January to March in comparison with the identical quarter final yr to $8.6 billion. The institute introduced this on Wednesday at its headquarters in Charlotte (North Carolina). Earnings per share are larger than ever up to now twenty years. However, like JP Morgan, this financial institution has a broader base and, in contrast to Goldman Sachs and Morgan Stanley, is closely concerned within the lending enterprise. The most necessary supply of revenue, web curiosity revenue, rose by 9 %, exceeding the introduced 7 % enhance. Bofa needed to put aside $1.3 billion in danger provisions for loans vulnerable to default, $200 million lower than a yr in the past. This speaks for a steady economic system regardless of battle, rising power costs and fragile provide chains.
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