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Equities revenue boost for US banks

The flurry of share market activity in the last quarter is being reflected in revenue boosts for some of the world's biggest investment banks.

Goldman Sachs reported earnings of US$18.60 on revenues of US$17.7 billion. According to eToro analyst Josh Gilbert, this was well above analyst expectations of US$10.19 per share on revenue of US$12.66 billion.

In fact, Goldman enjoyed 498% year on year growth.

Trading revenue was a particularly strong contributor to that growth. The investment bank reported US$3.69 billion in equities revenue, reflecting year on year growth of 68%.

"Equity markets have been a source of strength for banks throughout the crisis. Trading revenues have persistently improved, as we see record amounts of capital being pumped into the markets," Gilbert said.

J.P. Morgan also posted better than expected earnings - US$4.50 per share on revenue of US$33.12 billion.

First-quarter investment banking revenue at J.P. Morgan surged 222% to US$2.9 billion, exceeding the analyst estimate of US$2.65 billion according to Gilbert.

"These results provide strong support that the financial sector is recovering, and the bank is in a great position to take advantage of the economic upcycle," he said.

Similarly, Wells Fargo reported corporate and investment banking up 7% to US $3.6 billion. The bank reported earnings of US $1.07 per share on revenues of US $18.06 billion.

Read more: J.P. MorganJosh GilbertGoldman SachsWells Fargo