Major US banks, including JPMorgan Chase, Wells Fargo, and Goldman Sachs, released their quarterly and annual financial results on Wednesday, beating analysts’ expectations. The banks expressed optimism about the future economy under President-elect Donald Trump’s administration.
JPMorgan Chase earned $14 billion in profits for the fourth quarter, exceeding analyst estimates. Wells Fargo reported a profit of $5.1 billion in the fourth quarter and nearly $20 billion for the year. Goldman Sachs saw profits of $4 billion in the fourth quarter and $14 billion for 2024, citing successful connections between risky companies and clients willing to lend.
The banks’ optimism is notable given questions about interest rates, corporate financing activity, and geopolitical uncertainty. Wells Fargo’s chief financial officer, Michael Santomassimo, said his clients view the incoming administration as business-friendly and pro-growth, potentially boosting deal-making.
However, bankers also acknowledge potential risks, including the impact of wildfires in California, which could affect lenders’ mortgage portfolios. JPMorgan Chase reported more than 20 employees lost their homes due to the fires. The banks’ revenue performance was mixed, with Wells Fargo’s revenue falling short of analyst expectations.
Despite these challenges, the banks remain optimistic about the economy under Trump’s administration. They are considering how his policies, including proposed tariffs and immigration reforms, could shape the economic landscape.
Source: https://www.nytimes.com/2025/01/15/business/bank-earnings-goldman-jpmorgan-chase-wells-fargo.html