Wall Street's five major banks expect Q3 equity trading revenue to approach $19 billion

Odaily reports that the largest banks on Wall Street are expected to disclose combined equity trading revenue of nearly $19 billion for the third quarter when they report earnings next week. However, as capital market activity begins to cool, performance gaps among banks are gradually emerging, with some banks starting to significantly outperform their competitors. This stands in sharp contrast to the situation in the first half of this year, when nearly all of the five major U.S. banks benefited from a trading boom, keeping both equity and fixed income trading desks busy.

According to analyst estimates compiled as of Thursday's New York market close, Goldman Sachs Group, which will report earnings next Tuesday, is expected to lead major banks with $5.1 billion in third-quarter equity trading revenue. Morgan Stanley is expected to follow closely with $4.9 billion in equity trading revenue; JPMorgan Chase is projected at $4.5 billion; and Bank of America's equity trading division is expected to generate $2.6 billion in revenue.