Wall Street's biggest banks have seen eye-popping growth over the past year, as US financial giants rode the “Trump bump” amid optimism that the incoming administration would abolish bureaucracy to boost economic growth. Achieved full-year profit.
Executives at some of the country's biggest lenders said the real estate mogul's landslide victory over Kamala Harris in November helped boost profits at the end of 2024.
Their comments come after Goldman Sachs, JPMorgan, Wells Fargo and Citi reported their results for the past 12 months and last year's fourth quarter.
JPMorgan reported a record $58.5 billion in net income, up from $49.6 billion in 2023, and Goldman Sachs reported a profit of $14 billion in 2024, up from $8.5 billion a year earlier.
Trading in the Big Apple has revived in the past six months after central bank officials at the Federal Reserve cut interest rates.
Lower interest rates allow large companies to borrow money more cheaply to finance merger and acquisition activities.
Goldman CEO David Solomon told analysts on a conference call with investors that “there have been meaningful changes in CEO press conferences, particularly in response to the results of the U.S. presidential election.'' .
“There is a significant backlog of orders from sponsors and overall trading appetite is increasing, supported by an improved regulatory backdrop,” he added. “I feel like there is a tailwind blowing towards 2025.”
But Solomon added that there remains “uncertainty” about President Trump's immigration, trade and tax policies.
Jamie Dimon, chief executive of crosstown rival JPMorgan, echoed Solomon's remarks.
The 68-year-old Queens native said he feels American businesses are “emboldened by expectations for more pro-growth policies and improved collaboration between government and business” after Trump's election victory.
He also issued a word of caution, pointing to the potential risks of inflation and excessive government spending.
Mr. Dimon was reportedly eyeing a job in the Kamala Harris administration, but as The Post exclusively reported, Mr. Trump's inner circle used Mr. Dimon as a “sounding board” in developing economic policy.
He has been an enemy of the current Biden administration in recent months, slamming its approach to regulating the banking sector and calling out a blueprint that would force banks to add emergency capital to their balance sheets.
“This is not about weakening regulation, but rather setting rules for a transparent, fair and comprehensive approach based on rigorous data analysis,” Dimon told analysts.
Both Wall Street giants on Wednesday reported higher investment banking fees, a nod to the disruption to activity that was initially halted in 2021 in the midst of the global coronavirus pandemic.
JPMorgan's investment banking revenue rose 46% from 2023 to $2.6 billion. Goldman Sachs noted that fees rose 24% year over year to $7.7 billion, due in part to debt underwriting.
Goldman also reported that fourth-quarter profits rose to $4.1 billion compared to $2 billion year-over-year, while crosstown rival JPMorgan reported profits of $14 billion compared to $9.3 billion in the same period in 2023. It was announced that it had been accounted for.
Goldman shares rose more than 1% Wednesday morning, hitting $571.53 shortly after the company announced its full-year results.
JP Morgan stock was little changed after the opening bell, trading at 247.47.
Two other major banks also announced strong financial results.
Wells Fargo announced profits of $5.1 billion in the fourth quarter and $20 billion for the year. The bank noted that wealthy customers are putting their money into luxury savings products.
Citi, led by Jane Fraser, reported net income of $2.9 billion for the fourth quarter of 2024 and $12.7 billion for the full year.
