Five major U.S. financial companies increase profits as IPO slowdown hits headwind - July-September period

[New York Current Affairs] The financial results of six major US financial companies for the July-September period of 2026 were released on the 14th, and five companies, excluding Bank of America, secured increased profits. Although the rise in long-term interest rates has increased net interest income, which is calculated by subtracting interest expenses on deposits from interest income on loans, the momentum for initial public offerings (IPOs) and mergers and acquisitions (M&A) by companies has slowed, creating a headwind for investment banking operations.

The largest company, JPMorgan Chase, reported net income of $15.3 billion (approximately 2.4 trillion yen), an increase of 6% from the same period last year. Net interest income increased 13%. Investment banking fee income from supporting corporate IPOs and M&A also rose 13%, but fell from the April-June quarter.

U.S. financial companies recorded a significant increase in profits in the April-June period, benefiting from large-scale listings such as U.S. space and artificial intelligence (AI) company SpaceX. However, these movements have slowed recently, with JPMorgan CEO Dimon saying, ``Customer activity has weakened a little.''

Citigroup and Wells Fargo also saw profits rise 40% and 6%, respectively, driven by growth in net interest income. Bank of America was fined more than $1.2 billion by the Treasury Department for failing to prevent money laundering, resulting in a 17% drop in profits.

Investment banks Goldman Sachs and Morgan Stanley saw profits increase by 29% and 6%, respectively.