Goldman Sachs, JPMorgan & BofA's results tell a tale of stupendous times, squeezed costs
How good can things get? If you're an equities trader or an equity capital markets (ECM) banker at Goldman Sachs, JPMorgan or Bank of America (BofA), this may be the peak of your good times. The second quarter of 2026 was extremely vibrant.
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The chart below shows how vibrant. In both areas, revenues at all three banks increased substantially year-on-year. JPMorgan and Goldman Sachs outperformed BofA across equities and ECM, but this is standard. Bank of America's M&A bankers came roaring back. Goldman's debt capital markets (DCM) and fixed income traders outperformed.
As with revenues, so with profits. Net income at JPMorgan's corporate and investment bank (CIB) rose 46% year on year in the second quarter. At BofA's markets business, profits were up 71%. At BofA's banking business, profits were up 20%. Goldman's net profits were up an enormous 84%.
In the context, you might think bankers and traders would be thriving. They are, to a point. In its presentation today, JPMorgan says "revenue related compensation" (bonuses) in its corporate and investment bank was up by an undefined amount. At Goldman, compensation and benefits spending was up 30%.
BofA doesn't break out compensation or headcount for its investment bankers or traders. But there were signs that the fruits of the good times are flowing to shareholders most of all. Compensation spending at JPMorgan's CIB fell to 22% of revenue in the second quarter; headcount rose by a mere 2%. At Goldman Sachs, headcount actually fell by 800 people between the first and second quarters of 2026.
Today's results make it clear that these are exceptionally good times for exceptionally good banks. Good employees will be treated well. But the spending spigot has not been loosened and banks are keeping close track of costs. Operating leverage is the watchword, not big hiring and (probably) not lavish bonuses.
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