Goldman’s Stock Traders Made $6.4 Billion in 3 Months: Bond Traders Had a Very Different Quarter
Key takeaways
- Equity trading is now the main growth engine for the big banks, with Goldman leading the charge and bond trading lagging behind.
- Goldman equity revenue $6.44 billion (+72% YoY)
- Goldman bond revenue $3.47 billion (flat YoY)
- Goldman EPS $17.01 vs. $13.08 estimate
What happened
Goldman Sachs’ equity traders generated $6.44 billion in Q3 revenue, a 72% jump YoY, while its bond traders earned $3.47 billion, flat and below estimates. JPMorgan and Wells Fargo reported similar equity‑to‑bond splits, with JPM’s equity revenue up 49% and Wells’ up 21%. Goldman’s shares rose 4.5% pre‑market after the earnings beat, whereas JPM’s stock barely moved and Wells fell 1.4%.
Why it matters
Equity trading is now the dominant revenue driver for the big banks, eclipsing fixed‑income and investment banking. Goldman’s 34% equity share of total revenue signals a shift toward higher‑margin, high‑volume trading. The disparity between equity and bond earnings highlights differing market conditions for stocks…
Short-term and longer-term
Short-term. Goldman’s equity surge will likely keep its stock on an upbeat trend for the next few days as traders chase the high‑margin desk.
Longer-term. Over the coming months, Goldman’s equity dominance could justify a higher valuation multiple if the trend continues, while JPMorgan’s mixed results may keep its upside capped.