Morgan Stanley stands out at the end of Q3 with the best equity topline at US$4.1bn, driven notably by strength in EMEA and financing. Bank of America, Citigroup, Goldman Sachs, and JPMorgan all said they benefited from high client balances in their prime brokerage accounts and that derivatives trading had been brisk versus more sedate cash trading. All in, they reported US$14.9bn in revenues for Q3 2025.
Equities revenue at Morgan Stanley was US$4.12bn, up 35% year on year (YoY), with record results in prime brokerage and broad-based gains across products and regions; management also highlighted stronger derivatives activity in EMEA.
Sharon Yeshaya, chief financial officer, said: “Prime brokerage balances and financing revenues reached new records, and derivatives were up year over year with strength in EMEA.”
Goldman’s equities revenue was US$3.74bn, down 13% quarter on quarter (QoQ) and up 7% YoY. Sales and trading suffered most with intermediation at US$2.02bn, down 22% QoQ, and 9% YoY, while equities financing was US$1.72bn, up1% QoQ, and33% YoY.
Denis Coleman, chief financial officer, said: “Equities intermediation was lower in cash but better in derivatives, and equities financing hit a record US$1.7bn on record prime balances.”
The bank said average daily 99%VaRfirmwide was US$91 vs average daily firmwide 99%VaR was US$91m in Q3 vs US$98m in Q2.
JPMorgan equity business” revenue was up 1% QoQ at US$3.3bn. The bank did not delve extensively in its presentation on the quality of its equity business, but said the franchise grew strongly YoY.
Jeremy Barnum, chief financial officer, said: “Equities was up 33% with notable outperformance in Prime.”
Citi’s equities revenue was US$1.54bn, down 4% QoQ and up 24% year on year, driven by higher client activity in derivatives and increased cash volumes; prime balances were up roughly 44% year on year.
Mark Mason, chief financial officer, said: “Equities rose on higher derivatives activity and increased volumes in cash, with prime balances up about 44%.”
The bank disclosed an average 99%VaR for markets at US$117m, unchanged versus Q2 and up from US$107m in Q3 last year.
Bank of America’s equities revenue was US$2.27bn, ex-debit valuation adjustment (DVA), up 7% quarter on quarter and 14% YoY.
Alastair Borthwick, chief financial officer, said: “Equities trading led the improvement with 14% revenue growth, supported by increased financing activity in Asia.”
They disclosed an average 99% VaR at US$66m, down from US$84m in Q2 and roughly in line with US$64m a year earlier.
Across the five, the common pattern is elevated financing and record or near-record prime balances, busy derivatives franchises, and quieter cash sales trading. That mix marks a reversal from Q2 when Goldman led and lauded cash business activity whereas this quarter Morgan Stanley pulled ahead on derivatives and financing with EMEA strength.
Read more: Derivatives, prime brokerage shines in US banks’ Q2 equity results
Equity capital markets (ECM) were also a tailwind: Morgan Stanley cited a dealmaking revival and record pipeline for IPOs. Goldman’s investment banking fees climbed 21% QoQ to US$2.7bn, which they claimed stem specifically from a pickup in equity underwriting. JPMorgan’s investment banking fees were up 16% YoY to US$2.7bn citing more IPOs as the reasons. Citi said ECM fees rose 35% YoY to US$174m with convertibles and IPOs the main contributors. Bank of America flagged a similar rebound in underwriting fees. Together, the IPOs renewed activity provided incremental revenues to cash-equities businesses and derivatives flow around new listings.
We now await results from the private electronic liquidity provider giants Citadel Securities, Jane Street, and Hudson River Trading, who excel at market-making in cash products and are no doubt eating the Street’s lunch in cash intermediation—Citadel says it accounts for more than 20% of all US equity trading, and Jane Street reports more than 35% market share in ETFs.
Citadel Securities earned US$3.37bn in trading revenue in the first quarter of 2025 according to a document seen by Global Trading.
