Last year JPMorgan Chase (JPM) churned out more profits than it ever has before as it earned $14 billion in the final quarter of 2024.
Its full-year profits rose to $58 billion, an all-time record for JPMorgan and the most ever in the history of American banking. Its fourth-quarter profits were up 50% from the year-earlier period.
That results were buoyed by a surge in JPMorgan’s Wall Street operations, as dealmaking makes a comeback across the industry following a two-year-long drought. JPMorgan’s investment banking revenue was up 46% from a year earlier.
Trading revenue also rose 21% in the fourth quarter as JPMorgan and other big Wall Street giants benefitted from volatility surrounding the US presidential election last November.
Strong Wall Street results helped other big banks in the fourth quarter, including Goldman Sachs (GS) and Wells Fargo (WFC).
Goldman’s earnings in the fourth quarter jumped 105%, to $4.1 billion, and its full year profits jumped 68% to $14.2 billion. Its investment banking fees in the fourth quarter were up 24%.
“We are very pleased with our strong results for the quarter and the year,” Goldman CEO David Solomon said in a release.
Wells Fargo’s investment banking fees increased 59% in the fourth quarter compared with a year earlier, and its fourth-quarter earnings jumped to rose to $5.08 billion compared with $3.45 billion a year earlier.
The stocks of the biggest US lenders rallied following the election of Donald Trump on hopes that a new Republican administration would loosen some rules and apply more leniency in approving corporate mergers.
The Trump administration is also expected to scrap or revise a set of proposed capital rules that would have crimped future industry profits.
“The U.S. economy has been resilient,” CEO Jamie Dimon said in a press release, citing low unemployment and healthy consumer spending.
“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,” Dimon said.
He did mention some risks, too, including inflation and geopolitical conditions.
There were also some signs of consumer weaknesses in the bank’s results. At JPMorgan, earnings at its consumer unit were down 6% as the lender juggles the impact of elevated interest rates. And its net charge offs were up, due largely to its credit card unit.
But JPMorgan raised its guidance for net interest income in 2025 to $90 billion, up from a prediction it made last month.
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