Deal-making surge boosts Wall St as Goldman Sachs and JP Morgan rake in bumper profits
Wall Street titans Goldman Sachs and JP Morgan raked in bumper profits between April and June amid a surge in deal-making.
JP Morgan, America’s largest bank which is often seen as a bellwether for the US economy, said profits more than doubled from the same time last year to £8.6billion.
And Goldman’s profits hit £4billion, as its investment banking unit celebrated its second-highest quarter of revenue ever.
JP Morgan, America’s largest bank which is often seen as a bellwether for the US economy, said profits more than doubled from the same time last year to £8.6bn
Both were boosted by a flurry of companies seeking to snap up rivals and a rush of firms to float on the stock market.
Goldman’s investment bank pulled in revenues of £2.6billion. At JP Morgan, chief executive Jamie Dimon said global investment bank fees hit an ‘all-time high’ of £2.6billion, driven by an ‘active mergers and acquisitions market’.
Both were also helped by the improving economic outlook in the US, as they released piles of cash set aside to cover losses expected from the pandemic.
JP Morgan released reserves of £2.2billion, while Goldman freed up £66.5million.
Despite the rosy profits, JP Morgan’s overall revenue fell 8 per cent from the same time last year to £22billion.