CashNews.co
Wall Street banks JPMorgan Chase, Goldman Sachs and Citigroup notched up strong rises in profits at the end of last year, powered by a boom in trading and dealmaking.
JPMorgan’s net earnings rose 50 per cent per cent to $14bn, while Goldman’s doubled to $4.1bn. Citi swung to a profit of $2.9bn from a loss of $1.8bn in the final quarter of 2023.
The robust performance came as big banks benefited from a sharp rise in trading in equities both before and after the US elections, which took place on November 5. Donald Trump’s victory sent stocks soaring, with investors rushing into markets on hopes his pro-growth agenda would boost corporate America.
Banks’ investment banking units also got a lift from buoyant conditions in bond markets, with companies taking advantage of relatively low borrowing costs to raise debt. Businesses also tapped equities markets, launching initial and secondary offerings to raise cash.
The earnings reflected a turnaround in the fortunes of the wider US banking industry. A year ago profits were weighed down by a one-off contribution from the lenders to the US federal deposit insurance fund, which was depleted by the regional banking crisis in early 2023.
Citigroup’s shares climbed more than 5 per cent in pre-market trading in New York, while Goldman rose almost 4 per cent and JPMorgan ticked up around 1 per cent.