Wall Street's biggest banks just delivered some of their strongest trading quarters ever, yet investors remain hesitant, leaving bank stocks struggling to gain traction despite headline-beating results.

Goldman Smashes Trading Records

Goldman Sachs Group Inc. (NYSE:GS) blew past expectations for equities trading revenue, setting an all-time Wall Street record.

The bank reported $4.31 billion in equities trading revenue for the final quarter of last year. That marked the highest such figure ever posted by any bank.

Goldman reported earnings per share of $14.01, sharply beating the $11.48 consensus estimate. Revenue came in at $13.45 billion, slightly below the $13.9 billion estimate.

Global Banking and Markets revenue reached $10.41 billion, topping expectations of $9.27 billion. Investment banking revenue rose 25% year over year to $2.58 billion.

Assets under management climbed to $3.61 trillion, above the $3.52 trillion estimate. Total deposits increased 2.2% quarter over quarter to $501 billion.

The bank also raised its quarterly dividend to $4.50 per share from $4.00.

Despite the blockbuster trading numbers, Goldman shares traded 1% lower in premarket action Thursday.

Morgan Stanley Also Beats, Stock Rises Modestly

Morgan Stanley (NYSE:MS) ...