In the latest financial report for the third quarter of 2025, a significant boost was noted in market revenues, which experienced a 15% increase year-over-year, reaching $5.6 billion. This growth stemmed from both the Fixed Income and Equity markets, showcasing strong operational performance across various sectors.
The Fixed Income markets revenue hit $4.0 billion, reflecting a robust 12% rise. This increase was primarily driven by heightened activity in rates and currencies, as well as spread products and other fixed income commodities. In particular, revenue from rates and currencies surged by 15%, largely due to increased client engagement. Additionally, the spread products segment grew by 8%, attributed to a rise in mortgage trading and financing activities, despite a decrease in commodities-related activity.
On the other hand, Equity markets also showed remarkable growth, with revenues climbing 24% to reach $1.5 billion. This surge was propelled by an uptick in client activity within derivatives, an increase in cash equity volumes, and sustained growth in prime services, which achieved record balances—an approximate 44% rise in assets.
Operating expenses related to markets reached $3.5 billion, marking a 5% increase largely due to higher compensation and benefits as well as foreign exchange impacts. Nevertheless, efficiencies in transaction processes and a decrease in product servicing expenses helped to mitigate some costs, allowing for a net income of $1.6 billion. This reflects a 46% increase, driven by the growth in revenues against a backdrop of lower credit costs, despite rising expenses.
Overall revenues for the institution reached $22.1 billion in the third quarter, up 9% on a reported basis. This growth was supported by the performance from each of the five interconnected business segments and former franchises, although the Corporate/Other segment reported a decline.
In terms of net interest income, there was a 12% increase driven by contributions from various sectors including the markets, personal banking services, investment services, and banking operations. However, these gains were somewhat offset by decrease in the Corporate/Other segment. Non-interest revenue also rose by 4%, bolstered by performance in banking, investment management, and legacy franchises, while experiencing losses in Corporate/Other and other segments.
Net income for the overall quarter reached $3.8 billion, an increase from $3.2 billion in the same quarter the previous year. This improvement is credited to higher revenues and a reduction in credit costs that outweighed the rising expenses.
Earnings per share saw a positive trajectory as well, increasing to $1.86 from $1.51 per diluted share in the year-ago quarter, highlighting an improvement in profitability and share performance amidst operational growth.
In summary, the third quarter of 2025 showcased a significant turnaround in market revenues, propelled by active trading in fixed income and equity sectors, leading to overall financial strength in terms of income and robust performance across various business units.