Deal making boosts Wall St as Goldman Sachs and JP Morgan reap huge profits
Wall Street titans Goldman Sachs and JP Morgan racked up huge profits amid a wave of deals between April and June.
JP Morgan, America’s largest bank, often seen as a factor in the US economy, said profits more than doubled from the same time last year to £8.6 billion.
And Goldman’s profits reached £4 billion as its investment banking unit celebrated its second-highest quarter of revenue on record.
JP Morgan, America’s largest bank, often seen as a factor for the US economy, said profits more than doubled from the same time last year to £8.6 billion
Both were fueled by a wave of companies looking to conquer rivals and a rush of companies to float in the stock market.
Goldman’s investment bank had a turnover of 2.6 billion pounds. At JP Morgan, CEO Jamie Dimon said fees for global investment banks reached an “all-time high” of £2.6bn, driven by an “active M&A market”.
Both were also helped by the improving economic outlook in the US, as they released piles of money set aside to cover projected losses from the pandemic.
JP Morgan released reserves of £2.2 billion, while Goldman released £66.5 million.
Despite the rosy profit, JP Morgan’s total revenue fell 8 percent from the same time last year to £22 billion.