Big Banks' Third Quarter: JPMorgan Profit Rises 6%, Goldman Sachs Rides an Equities Surge, and Wells Fargo's Credit Costs Jump 51%

The largest US banks began the third-quarter earnings season on October 13 with results that point in different directions. JPMorgan Chase grew profit modestly, Goldman Sachs posted a large gain driven by stock trading, and Wells Fargo showed solid lending growth alongside a sharp rise in the money it set aside for bad loans. Together the three reports give a useful picture of the American banking system at the start of the final quarter of 2026. The Wells Fargo and Goldman Sachs numbers below come from the companies' own filings with the Securities and Exchange Commission and are described as preliminary. JPMorgan's figures come from two press reports that agree with each other on the main numbers, and readers who need exact figures should consult its official release.

Start with JPMorgan, the biggest of the three. According to RTTNews and a second report from TradingNews, the bank earned net income of about $15.3 billion, or $5.57 a share, up from $14.39 billion, or $5.07, a year earlier. Excluding special items, including net investment securities losses of $658 million, earnings were $5.75 a share. Net revenue was about $50.2 billion, up 8%. Net interest income, which is the difference between what the bank earns on loans and what it pays on deposits, rose 13% to $27.1 billion. Excluding the markets business, it rose 6% to $24.7 billion, helped by higher deposit, credit card and wholesale loan balances, partly offset by lower rates. Noninterest expense rose 12% to $27.3 billion, faster than revenue, because of higher compensation, brokerage and distribution fees, marketing and technology costs. The provision for credit losses was $2.74 billion, made up of $2.2 billion of net charge-offs, which are loans written off as uncollectable, and a net reserve build of $539 million, compared with $3.40 billion a year earlier. One of the reports said the earnings per share missed analysts' consensus of $5.90, and that the return on tangible common equity, a measure of profit against shareholder capital, was 20%. It also said the bank guided to net interest income of about $28 billion in the fourth quarter. These are details from a single secondary source and should be checked against the company release.

Goldman Sachs had the strongest quarter. Its filing shows net revenues of $18.68 billion, up 23% from a year earlier but down 8% from the second quarter. Net earnings were $5.29 billion, up 29%, and diluted earnings per share were $17.01, compared with $12.25 in the third quarter of 2025 and $20.98 in the second quarter of 2026. The annualised return on equity was 18.7%. The main driver was equities, where revenue rose 72% to $6.44 billion on financing and derivatives activity. Investment banking fees rose 21% to $3.22 billion, led by advisory work and equity underwriting. Fixed income, currencies and commodities revenue was $3.47 billion, essentially flat. Asset and wealth management revenue rose 14% to $5.05 billion. Goldman's standardised common equity tier 1 capital ratio, a measure of loss-absorbing capital, was 12.4%, down from 12.9% in the second quarter. The firm declared a dividend of $5.00 a share and repurchased $3.0 billion of stock in the quarter.

Wells Fargo's report is quieter but contains the most important warning. The filing shows net income of $5.95 billion, up 6% from a year earlier and down 7% from the second quarter, and diluted earnings of $1.87 a share, up 13% from a year ago. Revenue was $21.87 billion, up 2% from a year earlier and down 3% from the previous quarter. Net interest income rose 5% to $12.52 billion, while noninterest income fell 1% to $9.35 billion. Average loans grew 11% to $1.03 trillion and average deposits grew 11% to $1.48 trillion. But the provision for credit losses rose 51% from a year earlier to $1.03 billion. The common equity tier 1 ratio was 10.0% on a preliminary basis, down from 10.3% in the second quarter and 11.0% a year earlier. The bank repurchased 28.6 million shares for $2.5 billion, and its efficiency ratio was 63%. Noninterest expense fell 1% to $13.74 billion, and headcount fell 8%. Chief executive Charlie Scharf said the quarter showed broad growth and better returns, and that consumers and businesses remain in good shape, while the bank stays vigilant about risk. Press coverage reported that Wells Fargo shares fell about 3% on the day, with revenue seen as a disappointment, although those reports differed in some details.

What do the three reports say together? First, trading and capital markets are carrying a large share of profit. Goldman's equities revenue and JPMorgan's markets income show that investor activity, including financing and derivatives, remains strong. Second, lending is growing. Wells Fargo's loans and deposits both rose 11%, which suggests demand for credit remains healthy. Third, and more cautiously, credit costs are higher. Wells Fargo's 51% rise in its provision is the clearest sign, while JPMorgan's reserve build was attributed in one report to new lending rather than deterioration. A higher provision means banks are setting aside more money against expected losses, which does not mean those losses have occurred.

For ordinary customers, the main link is through credit. If banks expect more losses, they can tighten standards or price loans higher, especially for credit cards and unsecured loans. If they remain comfortable, borrowing conditions stay roughly as they are. The numbers suggest the second case for now, but the provision trend is worth watching in the fourth quarter. For savers, deposit growth of 11% at Wells Fargo shows that customers are still bringing money to large banks, but rates paid depend on competition and on the Federal Reserve.

For investors, the key point is the difference between the headline and the detail. A profit rise can hide faster cost growth, as at JPMorgan, and a revenue disappointment can hide solid lending, as at Wells Fargo. Capital ratios have also edged lower at Goldman and Wells Fargo, partly because the banks are returning money to shareholders. This article describes company-reported results and is not a recommendation to buy or sell any security.

The remaining big banks report over the coming days, and smaller regional lenders follow. Their credit-loss provisions and commentary on consumer spending will show whether Wells Fargo's rise is specific to that bank or part of a wider pattern.