JPMorgan Chase, Wells Fargo and Goldman Sachs report big profits

A number of the nation’s largest lenders, including JPMorgan Chase, Wells Fargo and Goldman Sachs, reported quarterly and annual financial results Wednesday that beat analysts’ expectations and largely expressed a positive outlook about the future of the economy after the election of the president. Donald J. Trump is inaugurated next week.

JPMorgan, the nation’s largest bank, said it made $14 billion in profit in the fourth quarter and nearly $59 billion for the full year. Wells Fargo earned $5.1 billion in the fourth quarter and $20 billion for the year and said wealthy depositors were pouring more money into its premium savings products. Citi, which also beat estimates, reported net income of $2.9 billion for the quarter and $12.7 billion for the full year.

Goldman Sachs, which reported profits of $4 billion in the fourth quarter and $14 billion for 2024, said it has had particular success in matching risky companies looking for money with clients willing to lend it, a typical sign that credit conditions, as Wall Street says, remain fluid. .

To some extent, the results weren’t a surprise: Bank stocks rose even faster than the broader market in 2024, which ended the year up 23.3%, as lenders took advantage of a booming stock market and the resumption of corporate financing activities to increase their profits. Yet bankers traditionally present themselves as a risk-averse group, and given questions about the future of interest rates, negotiations and the geopolitical world, their optimism about the future is remarkable.

Michael Santomassimo, Wells Fargo’s chief financial officer, said on a call with reporters that the bank’s corporate clients largely view the new administration as pro-business and pro-growth, which could be a boon for the conclusion of agreements.

“We feel like a lot of our clients, or a lot of market participants, are feeling more confident in their ability to execute M&A transactions,” Mr. Santomassimo said. “There is some optimism that activity levels will increase throughout the year.”

This is a developing story. Check back for updates.