NY, 27 October 2025— Wall Street’s biggest banks are reporting strong profits, thanks to a rebound in trading and deal-making—but their leaders are warning that some markets might be overheating.
JPMorgan Chase, Goldman Sachs, and Citigroup all beat expectations this quarter. JPMorgan’s profits rose 12% to $14.3 billion, Goldman Sachs jumped 37% to $4.1 billion, and Citigroup’s profits went up 18% to $3.5 billion.
The gains come as banks benefit from more mergers and acquisitions (companies buying or merging with each other) and market ups and downs, which help their trading businesses. Earlier this year, growth was slower as companies tried to figure out the impact of global trade tensions.
Bank executives are now more optimistic. JPMorgan’s CFO, Jeremy Barnum, said it’s been the busiest summer for announced deals in years. Goldman Sachs reported a three-year high in potential deals waiting to go through.
Even as profits rise, the banks are cautious. JPMorgan CEO Jamie Dimon warned some assets could be in “bubble territory,” meaning prices may be too high. Citigroup’s CEO Jane Fraser also noted that while the economy is doing well, some markets are overvalued.
Some signs of stress have appeared among U.S. borrowers, but overall, banks say their loan portfolios are strong. JPMorgan reported a small increase in loans that may not be recoverable and a $170 million loss from a failed subprime auto lender, Tricolor Holdings. Dimon admitted this was “not our finest moment.
Overall, Wall Street is seeing a strong comeback, but bank leaders are urging caution as markets continue to grow.
