New York Banks Post Strong Q3 Profits as the Fed Keeps Rates Elevated
JPMorgan, Goldman Sachs and Citigroup reported substantial third-quarter earnings, while the Federal Reserve’s September rate increase left borrowing costs and credit quality in focus.
By Noah Fitzgerald · October 16, 2026 · 3 min read
NEW YORK — JPMorgan Chase, Goldman Sachs and Citigroup each reported billions of dollars in third-quarter profit, giving investors an early look at the strength of large banks as the Federal Reserve holds interest rates high. JPMorgan reported net income of $15.3 billion, or $5.57 a share, and $50.2 billion in revenue. Goldman Sachs reported $5.29 billion in net earnings and $18.68 billion in net revenue. Citigroup posted $5.2 billion in net income, or $2.85 a diluted share, on $23.8 billion in revenue.
JPMorgan’s Oct. 13 earnings release showed activity across consumer banking, markets, investment banking and asset management, alongside $2.7 billion in credit costs. The bank also reported $2.2 billion in net charge-offs and a $539 million net reserve build. Those figures provide a view beyond headline profit: charge-offs reflect loans written down, while reserves include the bank’s estimate of potential future losses. JPMorgan also presented results excluding a significant item, separate from its reported net income.
Goldman’s quarterly revenue was its second-highest on record, according to the company, with client activity contributing to its $18.68 billion total. Citigroup said revenue growth came from Services, Wealth, Markets and Banking. Its year-over-year net-income comparison was also affected by a goodwill impairment recorded in the prior-year quarter. The results show that the three institutions entered the autumn with profitable businesses, though trading, lending and fee income can move differently from quarter to quarter.
The Federal Reserve’s Sept. 16 statement raised the federal-funds target range by a quarter point, to 3.75%–4%, and said inflation remained elevated. The committee also cited resilient domestic spending and continued uncertainty. Higher rates can support some bank lending returns while making borrowing costlier for households and businesses, with the effect varying across portfolios. The Fed’s economic projections reflect individual participants’ assessments, not a binding policy path. Investors will look to loan-loss provisions, deposit trends and the committee’s next decisions for further signals about the outlook.