Xin Lang Cai Jing·2026-01-15 17:00Core Insights - The trading boom on Wall Street in Q4 2025 did not diminish the business growth momentum of Goldman Sachs (GS) and Morgan Stanley (MS), marking one of the strongest years for investment banking since the pandemic [1][2] Group 1: Goldman Sachs Performance - Goldman Sachs reported a Q4 net profit of $4.6 billion, with diluted earnings per share of $14.01, reflecting a 12% year-over-year increase [1] - The firm’s trading fee income in Q4 grew by 25% to $2.57 billion, aligning with analyst expectations [4] - For the full year, Goldman Sachs' profits, trading fees, and net revenue reached the second-highest levels in history, only behind the peak in 2021 [3] - The core merger advisory business saw a 41% year-over-year revenue increase in Q4, reaching $1.36 billion, which met analyst expectations [3] - CEO David Solomon expressed optimism for 2026, predicting a favorable outlook for mergers and capital markets, potentially surpassing the peak merger transaction volume of 2021 [3] Group 2: Morgan Stanley Performance - Morgan Stanley's Q4 net profit increased by 18% to $4.4 billion, driven by a 47% surge in trading revenue [1][2] - The firm’s stock trading fee income in Q4 rose by 10%, with an annual increase of 28% [3] - Morgan Stanley set new historical records for both net revenue and net profit for the full year [3] Group 3: Industry Context - The overall trading activity on Wall Street was robust throughout most of 2025, although some competitors experienced a decline in trading activity by Q4 [4] - JPMorgan Chase reported a 4% year-over-year decline in investment banking fee income, falling short of analyst expectations [5] - Bank of America saw a slight 1% increase in Q4 investment banking fee income, exceeding market expectations despite declines in stock underwriting and merger advisory revenues [5] - Wells Fargo reported a 1% decrease in Q4 investment banking fee income, but achieved a record high in annual trading revenue [6] - Citigroup's merger advisory revenue soared by 84% year-over-year in Q4, contributing to a record total trading fee income of $1.29 billion, a 35% increase [7]