Wall Street’s largest banks including Bank of America, Citigroup, and JPMorgan, saw robust growth in their prime brokerage businesses in 2025, benefiting from high hedge fund returns and increased leverage, according to a report by Reuters.
The strong revenue gains came as multi-strategy and macro funds capitalised on market volatility and an AI-fuelled equity rally.
Bank of America reported a 23% rise in its equities revenue in Q4, while Citigroup’s equities markets revenue reached $1.1bn, with prime balances up more than 50%. JPMorgan’s equity markets unit surged 40% to $2.9bn, driven largely by its prime brokerage operations. Executives noted that favourable trading conditions allowed hedge funds to increase leverage without counterparty risk.
The collapse of Credit Suisse and its brokerage lending operations has intensified the market share battle among US banks. Large hedge funds, including DE Shaw, Balyasny, Bridgewater, and Point72, achieved double-digit returns in 2025, boosting demand for prime brokerage services. Goldman Sachs reported stock-picking funds returned 16.24% last year, roughly in line with the S&P 500.
