Wall Street Deal Frenzy Boosts Bank of America, Morgan Stanley Q3 Profits
Bank of America and Morgan Stanley report strong Q3 profits as Wall Street dealmaking surges. Net income jumps, trading and investment banking fees soar.
Bank of America and Morgan Stanley CEOs celebrate strong Q3 earnings amid Wall Street dealmaking boom.
US banking giants Bank of America (BAC) and Morgan Stanley (MS) reported impressive third-quarter results, riding the wave of a Wall Street dealmaking boom. Bank of America posted a net income of $8.47 billion, up 23% year-on-year, while Morgan Stanley’s profits surged 45% to $4.6 billion—both exceeding analysts’ expectations by more than $1 billion.
The strong performance was largely fueled by a summer surge in mergers and IPOs. Dealmaking fees jumped 43% at Bank of America to $2 billion and 44% at Morgan Stanley to $2.1 billion. Trading also contributed significantly, with Bank of America’s client trading revenue rising 8% to $5.3 billion and Morgan Stanley’s soaring 24% to $6.28 billion, driven by equity, fixed income, currency, and commodity transactions.
Morgan Stanley CEO Ted Pick called the quarter “outstanding,” while Bank of America CEO Brian Moynihan highlighted “strong fee performance from our market-facing businesses.”
Notable deals included Bank of America’s lead advisory role in Union Pacific’s $71 billion acquisition of Norfolk Southern, the largest deal of the year, and co-facilitation of Keurig Dr Pepper’s $18 billion purchase of JDE Peet’s. Morgan Stanley also advised on both transactions.
Following the earnings announcements, Bank of America shares jumped 5% in pre-market trading, and Morgan Stanley climbed over 4%.
Other Wall Street heavyweights, including Goldman Sachs, JPMorgan Chase, Citigroup, and Wells Fargo, also posted strong Q3 earnings, with investment banking fees rising between 17% and 42% year-on-year. Analysts attribute the growth to faster merger approvals and expected easing of capital and regulatory requirements under Washington policies.
Meanwhile, Bank of America’s net interest income, the bank’s core lending revenue, climbed 9% to $15.38 billion, setting a new quarterly record and reflecting steady growth in Main Street lending.
