{"id":630135,"date":"2026-10-14T07:18:19","date_gmt":"2026-10-14T07:18:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/630135\/"},"modified":"2026-10-14T07:18:19","modified_gmt":"2026-10-14T07:18:19","slug":"major-financial-firms-wealth-revenues-climb","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/630135\/","title":{"rendered":"Major Financial Firms\u2019 Wealth Revenues Climb"},"content":{"rendered":"

Wealth divisions at some of the country\u2019s largest financial institutions are serving as firm ground while some banks face headwinds in other divisions, according to earnings reports.<\/p>\n

JPMorgan Chase, Wells Fargo, Goldman Sachs and Citigroup were among the institutions that announced third quarter earnings, with Bank of America and Morgan Stanley set to follow.<\/p>\n

While some firms matched or beat overall expectations, several ran into difficulties in fixed income and commodities trading. In particular, JPMorgan reported a decline in fixed-income trading, the first such dip in two years. However, wealth earnings either exceeded or broadly met expectations.<\/p>\n

In JPMorgan\u2019s asset and wealth management division, revenue was up 14% year-over-year to $6.9 billion, based largely on growth in management fees from higher average market levels and inflows. Expenses also grew 14% to $4.4 billion, due to higher compensation and \u201ccontinued growth in private banking advisor teams.\u201d The firm\u2019s assets under management hit $5.2 trillion, a 13% year-over-year boost.<\/p>\n

Related:Wirehouses Lost 517 Advisors in First Half of 2026<\/a><\/p>\n

At Wells Fargo, total revenue in the wealth and investment management division hit 12% year-over-year at $4.1 billion, with a 5% boost over the second quarter, while net interest income climbed 12% year-over-year, \u201cdriven by higher deposit and loan balances and lower deposit costs.\u201d However, expenses also grew year-over-year and quarter-over-quarter.<\/p>\n

Revenue in Goldman Sachs\u2019 asset and wealth management divisions was $5.05 billion in the third quarter, a 14% year-over-year jump and a 10% jump from the second quarter, coming out over $400 million ahead of general expectations. According to Goldman Sachs, the boost came from \u201csignificantly higher management and other fees and incentive fees.\u201d<\/p>\n

However, the firm noted these revenue boosts were \u201cpartially offset by significantly lower net revenues\u201d in investments, private banking and lending; in the case of the latter two, Goldman Sachs attributed the dip to \u201cthe payment of interest on previously impaired loans in the prior year period.\u201d<\/p>\n

Finally, Citigroup reported a 15% revenue growth in its wealth business, while net interest income jumped by 20% from the prior year. Like other firms, expenses were also up year-over-year due to higher compensation.<\/p>\n

Though the wealth divisions posted strong earnings, other aspects of the businesses showed strain, particularly in fixed income. At JPMorgan, fixed-income earnings fell 4% year-over-year, and total trading revenue came in below expectations (though early-morning market losses dissipated after JPMorgan raised its net interest income projections for the year).<\/p>\n

Related:$1.3B UBS Team Departs for Wells Fargo’s FiNet<\/a><\/p>\n

The revenue dip came from declines in commodities, rates, credit and public finance. While total trading revenue and investment banking fees climbed, they came in below at the lower end of JPMorgan\u2019s expected ranges (though stock traders had an all-time best third quarter), according to Bloomberg<\/a>. Meanwhile, Wells Fargo beat estimates by managing expected loan losses, with provision for credit losses and net charge-offs both beating estimates.<\/p>\n

While fixed-income and commodities traders at Goldman Sachs came in below expectations, the firm\u2019s equities traders made up ground by exceeding estimates and posting a record for any bank\u2019s third quarter in equities.<\/p>\n

According to Bloomberg<\/a>, the firm attributed the fixed-income declines to slumps in mortgages and credit, and lower revenue from interest-rate products. Additionally, Citigroup\u2019s fixed-income traders seem to avoid the difficulties at some other institutions with their best third quarter in over 10 years.<\/p>\n

During the JPMorgan earnings call with CEO Jamie Dimon and CFO Jeremy Barnum, the principals addressed the value proposition of their investments in artificial intelligence throughout the bank, with Barnum saying he was \u201ctrying to move away\u201d from quantifying the benefits of the technology by arguing it was increasingly \u201cwell diffused\u201d inside the company.<\/p>\n

Related:Bank of America Merrill Lynch Snags $1.2B UBS Team in New Mexico<\/a><\/p>\n

While the company had done so in the past, Barnum argued that those figures were typically tied to generative AI opportunities, whereas questions now center on the value-add of generative and agentic AI tools. However, Barnum acknowledged that the visibility of those benefits wasn\u2019t legible in the company\u2019s current quarterly earnings.<\/p>\n

\u201cThat\u2019s probably not that surprising, because as important and dramatic and exciting as this theme is, it takes a long time to really do things that are visible at an institution of our size,\u201d he said. \u201cI can tell you that just anecdotally, the types of use cases and benefits that I\u2019m starting to see \u2026 are increasingly exciting.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Wealth divisions at some of the country\u2019s largest financial institutions are serving as firm ground while some banks…\n","protected":false},"author":2,"featured_media":630136,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":["post-630135","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-new-zealand","tag-newzealand","tag-nz","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/630135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=630135"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/630135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/630136"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=630135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=630135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=630135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}