Bank of America and Morgan Stanley Ride Wall Street Dealmaking Wave to Big Q3 Profits
Bank of America (BAC) and Morgan Stanley (MS) delivered standout third-quarter earnings, with profits surging 23% and 45%, respectively, amid a Wall Street boom in mergers and IPOs.
Bank of America reported $8.47 billion in net income, while Morgan Stanley earned $4.6 billion—both topping analyst expectations by more than $1 billion.
The strong results were driven by a frenzy of dealmaking that swept through the summer. Investment banking fees jumped 43% at Bank of America to $2 billion and 44% at Morgan Stanley to $2.1 billion compared to last year.
Trading divisions also delivered. Bank of America’s client trading fees climbed 8% to $5.3 billion, while Morgan Stanley’s surged 24%, lifting total trading revenue to $6.28 billion from equities, fixed income, currencies, and commodities.
Morgan Stanley CEO Ted Pick called the quarter “outstanding,” while Bank of America’s Brian Moynihan praised “strong fee performance from our market-facing businesses.”
These results add to what’s shaping up to be a robust third quarter for major U.S. banks. Bank of America landed the top advisory role in Union Pacific’s $71 billion acquisition of Norfolk Southern, the largest deal of 2025 so far. Morgan Stanley also advised on that mega-railroad merger and co-facilitated Keurig Dr Pepper’s $18 billion acquisition of JDE Peet’s.
Investors responded positively—Bank of America shares rose 4%, and Morgan Stanley gained more than 6% in early trading.
Their rivals—Goldman Sachs, JPMorgan Chase, Citigroup, and Wells Fargo—also reported stronger-than-expected profits and dealmaking activity this quarter.
- Goldman Sachs’ investment banking fees soared 42% to $2.65 billion.
- JPMorgan’s rose 17% to $2.61 billion.
- Citigroup’s climbed 17% to $1.17 billion.
- Wells Fargo’s dealmaking revenue jumped 25% to $840 million.
All are benefitting from faster merger approvals and lighter capital requirements under the Trump administration, creating fertile ground for Wall Street’s resurgence.
Morgan Stanley’s Ted Pick told analysts that this moment for investment banks is one where “macro uncertainty and enormous opportunity uncomfortably coexist,” comparing today’s environment to the mid-1990s.
Meanwhile, Main Street lending also showed strength. Bank of America’s net interest income rose 9% year-over-year to $15.38 billion, marking a new all-time high for its quarterly lending revenue.
