The news: JPMorgan Chase, Wells Fargo, Citibank, and Goldman Sachs reported earnings for Q3 2025. JPMorgan, the largest, reported revenues of $47.1 billion, beating analyst estimates, and raised its full-year outlook for net interest income. All beat estimates on adjusted earnings.

Highlights:

• Capital markets led growth. JPMorgan reported equities revenues up 33% and fixed income revenues up 21%. Its investment banking fees rose 42%. Wells Fargo’s investment bank income was up 25%, while Citi’s banking unit, which includes investment banking, saw revenues rise 34%.
• Wells Fargo is in recovery. The bank is growing again after its asset cap was removed, and it’s projecting better future returns. Its focus on small business banking is paying off. Wealth management division fees also rose.
• Citi is still unwinding its global empire, which has held back returns. CEO Jane Fraser has been reducing its international footprint, conducting layoffs, and restructuring its divisions. Some analysts are skeptical that the bank can pull it off.
• Consumers overall are doing fine right now. Wells Fargo lowered its credit loss provisions, suggesting strong fundamentals, and consumers appear to be paying back loans as expected. JPMorgan raised its reserves for chargeoffs as it targeted growth in its credit portfolio.
• But the outlook going forward is precarious. Credit quality could deteriorate, which would impede margin growth. And delinquency rates on subprime auto loans are at record highs. Broad worries include the impact of tariffs, trade tensions, geopolitics, the fiscal deficit, and inflated asset prices.

Our take: Big banks projected a characteristic mix of optimism and caution in Q3. Banks have ample headroom for growth, but earnings will suffer if economic conditions worsen, consumer credit declines, markets fall, or deals slow.