Goldman Sachs Equities Hit $6.44B as JPMorgan Bond Revenue Misses

Goldman Sachs reported equity trading revenue of $6.44 billion in the third quarter, a 72% increase from the same period a year ago. JPMorgan Chase’s bond desk, in contrast, fell more than $500 million short of forecasts.

Higher interest rates failed to boost bond trading, even as the 10-year Treasury yield hovered near 5.2% on Tuesday, according to Bloomberg.

What Caused the Divergence Between Goldman Sachs Equities and Bond Desks?

Goldman’s equities desk brought in $6.44 billion, nearly double the $3.47 billion from fixed income. Forbes noted that fixed income revenue slipped 1% year over year. The unit that includes both desks increased 32% to $13.46 billion.

Herman Chan, a senior US banks analyst at Bloomberg Intelligence, discussed the sector-wide gap.

“Goldman was the gold standard for the third quarter.”

Herman Chan, Bloomberg

JPMorgan’s equities desk generated $5.0 billion, up 49%, while fixed income slid 4% to $5.4 billion, Quartz reported. Bloomberg highlighted that this was the bond desk’s first revenue decline in over two years, according to Bloomberg.

Chan attributed the weakness to forecasts of prolonged high rates, which left clients cautious in September.

JPMorgan’s total revenue and net income also missed analyst expectations, per Forbes.

Can Equity Desks Still Win If Rates Stay High?

New York Fed President John Williams said Tuesday that one more rate hike this year looks suitable. He does not forecast another in 2027, Bloomberg reported.

Most Fed officials supported a 2026 rate hike, according to the latest minutes. J.P. Morgan also expects one more December hike, as previously reported.

Higher rates still help lenders. JPMorgan’s net interest income, the difference between loan earnings and deposit costs, climbed 12.8% to $27.04 billion, according to Forbes.

Forbes saw no broad credit problems. However, Wells Fargo set aside $1.03 billion for loan losses, up from $681 million a year earlier.

Trading is a different business, and Chan predicts seasonal declines in fourth-quarter trading revenue.

Equities powered trading growth at both banks this quarter. That rally now depends on the AI trade, which experienced a chip stock selloff on Tuesday, according to Bloomberg.