Big US banks reported Wednesday quarterly profits above average analyst estimates, lifting major stock indexes. Citigroup shares climbed 7%, Goldman Sachs leaped over 5%, JPMorgan Chase increased over 1% and Wells Fargo rose 6% after reporting strong fourth-quarter results.
JPMorgan
JPMorgan Chase reported a 50% rise in net profit to $14 billion on solid results from all business lines. Revenue for the quarter surged by 10% to $42.8 billion, and earnings per share were $4.81.
JPMorgan said that it had a record net profit of $58.5 billion in the full year 2024. The banking giant added that it will distribute a common dividend of $3.5 billion, or $1.25 per share.
CitiGroup
CitiGroup reported a net income of $2.9 billion in the fourth quarter of 2024, compared to a net loss of $1.8 billion in the same quarter last year. The increase in net income was primarily due to higher revenues, lower expenses, and lower cost of credit. Revenue increased 12% to $19.6 billion, driven by growth in each of Citi’s businesses.
For the full year 2024, the bank reported net income of $12.7 billion and revenues of $81.1 billion.
Wells Fargo
Wells Fargo’s net income increased 47.3% to $5.1 billion in the fourth quarter, while its revenue declined by 0.4% to $20.37 billion.
Goldman Sachs
Goldman Sachs reported a net income of $4.1 billion and a revenue of $13.87 billion in the quarter. Diluted earnings per share (EPS) for the quarter was $11.95, compared with $5.48 for the fourth quarter of 2023.
The bank attributed the increase to higher net revenues across all segments, with significant growth in Global Banking and Markets.
CEOs upbeat
Wall Street CEOs hope that the incoming administration would be business-friendly amid a favorable market environment for banks and expectations that President-elect Donald Trump will execute a deregulatory and lower-tax agenda.
Goldman Sachs’ David Solomon noted a “meaningful shift” in CEO confidence after the results of the US election. “Additionally, there is a significant backlog from sponsors and an overall increased appetite for dealmaking, supported by an improving regulatory backdrop,” Reuters quoted Solomon as telling analysts on an earnings call.
JPMorgan Chase CEO Jamie Dimon expected more favorable conditions. “Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business,” he said in a statement.
“We feel optimistic about where we are going into 2025 both because of where the economy is and the strength that has existed, as well as the business-friendly approach from the incoming administration,” Wells Fargo CEO Charlie Scharf told analysts.
