US bank traders achieved a record $54 billion in revenue in 2024, surpassing the previous high set in 2022, as heightened volatility from geopolitical tensions and the artificial intelligence boom boosted trading activity, according to data from analytics firm Coalition Greenwich.
Record revenue driven by macro and credit trading
The record haul was led by a surge in macro and credit trading, with revenues from interest rate, currency, and commodity products jumping 18% year-on-year. Credit trading revenues rose 15%, as investors repositioned portfolios in response to shifting central bank policies and geopolitical risks.
“The combination of war in Ukraine and the Middle East, along with the rapid adoption of AI, created a perfect storm for volatility,” said a senior analyst at Coalition Greenwich. “Banks that invested in electronic trading and risk management systems were best positioned to capture the flows.”
Top banks lead the pack
The five largest US banks—JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, and Morgan Stanley—accounted for the bulk of the revenues. JPMorgan alone generated over $12 billion in trading revenue, its highest ever, according to the bank’s annual report.
Goldman Sachs saw a 20% increase in fixed-income trading, while Citigroup’s rates trading desk posted its best year since 2008. The strong performance helped offset declines in investment banking fees, which remained subdued due to a slow IPO market.
AI and automation reshape trading floors
The record revenues also reflect a structural shift in how banks trade. Algorithmic trading and AI-driven strategies now account for more than 60% of all trading volumes in some asset classes, up from 40% five years ago, according to Coalition Greenwich.
“AI is not just a buzzword; it’s fundamentally changing liquidity provision and risk management,” said the analyst. “Banks that fail to adapt will lose market share.” The trend has also led to a reduction in headcount on trading floors, with some desks cutting staff by 10% despite the revenue boom.
Outlook for 2025
Looking ahead, analysts expect trading revenues to remain elevated but caution that the record levels may not be sustainable if geopolitical tensions ease or central bank policies stabilize. “The volatility tailwind could fade, but the structural changes from AI are permanent,” the analyst added.
