Wall Street bonuses poised to hit record as annual profits forecast to top US$90 billion

A BLOCKBUSTER year for New York’s trading and investment-banking firms is poised to deliver record earnings for the industry, with profit on pace to exceed US$90 billion, and bonuses expected to reach an all-time high.

The estimate for annual earnings, based on growth in the first half of 2026, would comfortably surpass last year’s record of US$65.1 billion, according to a report by New York State Comptroller Thomas DiNapoli. His office measured the profits of the broker-dealer operations of New York Stock Exchange member firms.

That bumper haul should translate into a record set of bonuses in the new year for finance professionals across the sector, barring any significant economic disruption, DiNapoli said, without providing specific figures.

Major Wall Street firms have already signalled record revenue in key business lines so far this year, aided by volatility in markets and a return to confidence in dealmaking. Goldman Sachs, for one, posted its third consecutive all-time quarterly record for stock-trading at any bank.

For the New York securities industry, the first half of the year has been the strongest two-quarter period on record, aided by an increase in revenues from underwriting, which was up 68 per cent, and from account supervision and advisory activities, which climbed 16.4 per cent, according to DiNapoli’s report.

A strong year for Wall Street translates into a boon for New York City and its job market. Employment in the industry reached 207,400 jobs in 2025, and the comptroller’s office expects that 5,300 more jobs will be added this year.

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It’s also lucrative for the state’s coffers. The securities industry, through business and personal income taxes, added at least US$26.3 billion to the New York state budget for fiscal 2025-2026, up nearly 29 per cent from a year earlier.

Risks tied to global conflicts, inflation and artificial intelligence pose “growing concerns” to the industry and the state, the comptroller’s office said.

“Given the increasing contributions to both the city’s and state’s tax bases, the potential for an industry downturn presents an increasing risk to public finances and the broader regional economy,” according to the report. BLOOMBERG