Bank of America, Goldman Sachs, and Citigroup have reported third-quarter profits that exceeded analyst expectations, indicating strong performance among major Wall Street banks.

Goldman Sachs saw a significant increase in profit, reaching $3 billion, up from $2.1 billion in the same quarter last year. Bank of America experienced a decline in profit, but it was less severe than anticipated, benefiting from gains in trading, asset management, and investment banking fees despite losses on outstanding loans. Citigroup also posted better-than-expected results, with a profit dip to $3.2 billion, aided by revenue growth in its services, banking, wealth, and US personal banking sectors, despite challenges in its credit card business.

The strong earnings reports have led to a surge in investor confidence, with shares of these banks outperforming the S&P 500 this year. Goldman Sachs leads with a 38% gain, followed by Citigroup at 32% and Bank of America at 27%. The robust economic environment and thriving stock market have positively contributed to the performance of these investment banks.