Wall Street banking titans saw their revenues surge after a wave of deal-making.
Bank of America and Morgan Stanley led the charge, after both raked in more money between July and September than the same time last year.
Morgan Stanley’s investment banking revenues were up 67 per cent from a year ago to £2billion, driven by ‘record advisory revenues’ as it helped clients on their mergers and acquisitions.
Morgan Stanley’s investment banking revenues were up 67 per cent from a year ago to £2bn, driven by ‘record advisory revenues’ as it helped clients on their mergers and acquisitions
This helped push total revenues up 26 per cent to £10.8billion, and profits up 37 per cent to £2.7billion.
Bank of America’s revenue climbed 12 per cent to £16.7billion and its profits rose 58 per cent to £5.6billion, as it released £804million of reserves it had set aside to cover loans expected to turn sour during the pandemic.
It added that investment banking fees had jumped 23 per cent to near-record levels of £1.6billion. And in its consumer division, deposits surged above $1 trillion (£731billion) for the first time.
Citigroup’s revenues hit £12.6billion, down 1 per cent on last year, although profits were up 48 per cent to £3.4billion.
Chief executive Jane Fraser said: ‘The recovery from the pandemic continues to drive corporate and consumer confidence.’
The bank’s UK-born boss added that while customers have been holding onto more cash during the pandemic, which has hit Citi’s ability to lend, ‘we are seeing higher consumer spending across our cards products’.
Wells Fargo disappointed slightly as its revenue slid 3 per cent to £13.7billion, though profits climbed 59 per cent to £3.7billion as it was able to release £1.2billion which it had set aside to cover loan losses.
While the American economy returned to pre-pandemic levels of output this summer, fears have been growing over a steep rise in inflation.