Overview

• The six largest U.S. banks reported a combined $16.3 billion in equity trading revenues for Q1 2025, a 33% year-over-year increase fueled by tariff-driven market swings.
• Goldman Sachs, Morgan Stanley, and JPMorgan Chase each generated approximately $4 billion in equities trading revenue, with Morgan Stanley seeing a 45% surge in trading revenue overall.
• Citigroup and Bank of America reported equities trading revenue growth of 23% and 17%, respectively, as volatility encouraged high trading volumes and wider bid-ask spreads.
• President Trump's tariff announcements on Canada, Mexico, China, and 'Liberation Day' measures triggered sharp market fluctuations, creating lucrative opportunities for trading desks.
• Bank executives anticipate continued volatility in Q2 2025 to sustain trading profits, helping to counterbalance declines in M&A and IPO activity caused by economic uncertainty.