US bank stocks news this week is driven by third-quarter 2026 earnings: the largest US banks reported on October 13 and 14, and the results showed rising net interest income and booming equities trading, offset by one-off charges and softer fixed income trading.
For a US-stock investor, the reports are the clearest read yet on how big banks are handling the Federal Reserve's return to rate hikes.
The Driver: Q3 2026 Bank Earnings After the Fed's September Rate Hike
The season opened against a changed rate backdrop. According to the Federal Reserve, on September 16, 2026 the Federal Open Market Committee voted 12-0 to raise the federal funds target range by a quarter point to 3.75% to 4%.
That was the setting when JPMorgan Chase, Goldman Sachs and Citigroup reported on Tuesday, October 13, followed by Bank of America on Wednesday, October 14, in a week covered in Gotrade's Q3 bank earnings season kickoff.
The headline numbers were mixed rather than uniform. Goldman Sachs and Citigroup reported higher profits than a year earlier, JPMorgan missed the earnings consensus, and Bank of America saw profit fall because of a regulatory charge.
Bank | Q3 2026 net income | Diluted EPS | Revenue | Source |
|---|
JPMorgan Chase (JPM) | $15.3 billion | $5.57 (consensus $5.90) | $50.91 billion managed | Hargreaves Lansdown |
Goldman Sachs (GS) | $5.29 billion | $17.01 | $18.68 billion | Company 8-K |
Citigroup (C) | $5.2 billion | $2.85 | $23.8 billion | Company 8-K |
Bank of America (BAC) | $6.9 billion | $0.91 | $30.0 billion | Company 8-K |
Why Higher Rates and Trading Volumes Matter for Bank Profits
Banks earn net interest income (NII) on the gap between what they collect on loans and securities and what they pay on deposits. When rates rise and balances grow, that spread can widen.
As reported by Hargreaves Lansdown, JPMorgan's NII rose 13% year over year to $27.1 billion, with average loans up 10% and average deposits up 8%. Per Beinsure, Bank of America's NII rose 8% to $16.4 billion, and its net interest yield improved 15 basis points to 2.16%.
Trading was the second lever, and it split by asset class. Equities desks had a strong quarter: Goldman's equities net revenues jumped 72% to $6.44 billion, while its fixed income, currencies and commodities (FICC) revenues were essentially unchanged at $3.47 billion, according to the company's Q3 earnings release.
JPMorgan's equities trading rose 49% while fixed income trading fell 4%, per Hargreaves Lansdown. At Bank of America, FICC revenue fell 17% to $2.6 billion and equities rose 11% to $2.5 billion, according to Beinsure.
Credit and one-off items are the third lever. Rising rates can raise borrowing costs for households, so investors watch loan-loss provisions closely. Citigroup set aside $2.6 billion in total provisions for credit losses, including a net reserve build of $369 million, per its Q3 earnings release.
JPMorgan, Goldman Sachs, Citigroup and Bank of America in the Q3 Story
JPMorgan Chase missed the $5.90 consensus with EPS of $5.57, as reported by Hargreaves Lansdown. Excluding $658 million of investment securities losses, adjusted profit was $15.8 billion, or $5.75 per share. Credit loss provisions fell to $2.7 billion from $3.4 billion a year earlier.
CEO Jamie Dimon flagged "large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates" as risks, adding that "these forces may be manageable, but we remain prepared for a wide range of outcomes."
Goldman Sachs reported net revenues up 23% and net earnings up 29% from a year earlier, with diluted EPS of $17.01 versus $12.25 in Q3 2025, per its earnings release. Investment banking fees rose 21% to $3.22 billion and the bank posted an annualized return on equity of 18.7%.
Citigroup reported revenue up 8% to $23.8 billion, and net income of $5.2 billion versus $3.8 billion in Q3 2025, with both its Services and Wealth businesses growing revenue 15%, according to its earnings release. CEO Jane Fraser described a quarter "which included the best third-quarter revenue in a decade."
Bank of America reported net income of $6.9 billion, down from $8.3 billion a year earlier, per Beinsure, after a $1.2 billion non-tax-deductible regulatory settlement charge ($0.17 per share). Excluding that charge, adjusted net income was $8.1 billion, or $1.08 per share.
The bank's supplemental filing lists net income of $6,933 million and diluted EPS of $0.91. Beinsure reports the consent orders concern aspects of the bank's compliance programs under the US Bank Secrecy Act.
What to Watch Next for US Bank Stocks
The Fed's rate path: the September 16 hike to 3.75% to 4% is the backdrop for NII. Each further FOMC decision changes the rate environment banks operate in.
Fixed income trading: FICC was flat at Goldman and weaker at JPMorgan and Bank of America this quarter, so whether that softness persists is a sector question to watch.
Credit quality: Citigroup's $369 million reserve build and the rising-rates risk Dimon named make loan-loss provisions a figure to track in coming quarters.
Compliance follow-through: how Bank of America executes on its Bank Secrecy Act consent orders.
None of these are predictions; they are the specific items the Q3 reports themselves put on the table.
This article is for education and information only and is not investment advice. Investment decisions are your own after doing your own research.
Sources
