Major U.S. Banks Prepare for Third-Quarter Earnings Reports

Major U.S. financial institutions are scheduled to report third-quarter earnings on October 13 and 14. While overall profits for the largest lenders are projected to increase by up to 20 percent year-over-year, bank stocks have declined, with the KBW Bank Index falling 13 percent from its August peak.

JPMorgan Chase expects a rise in trading revenue and investment banking fees by a mid-to-high teens percentage. In contrast, Bank of America CEO Brian Moynihan warned of at least a 10 percent drop in investment banking fees. Other executives offered diverging views: Goldman Sachs CEO David Solomon expects a muted quarter with softer performance in fixed-income, currencies, and commodities, while Morgan Stanley co-president Dan Simkowitz reported a robust investment banking pipeline driven by the AI investment cycle.

Investors are monitoring how rising Treasury yields will affect funding costs, lending growth, and credit quality. Market volatility is further highlighted by recent IPO cancellations from companies including SB Energy and Oura.