Why Did US Banks Achieve Record Profits in 2024?

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As Wall Street buzzes with expectations from Donald Trump's growth policies, the largest US banks also ended President Joe Biden's term with a series of impressive achievements.

Vibrant markets and renewed positive business confidence helped trading and investment banking revenue soar across the industry.

• JPMorgan Chase & Co. became the first bank in US history to record profits exceeding $50 billion in a year.

  

• At Citigroup Inc., 3/5 main business segments — asset management, consumer banking, and services — achieved record revenue for the year.

• Goldman Sachs Group Inc. was no slouch either, with equity trading revenue reaching an all-time high

Even Wells Fargo & Co., which has the most modest position in the investment banking segment on Wall Street, achieved investment banking revenue growth of up to 62% Y/Y.

In this article, Viet Hustler will analyze in depth the business results of major banks and the key factors behind this success:

I. Overview & Key Developments in the Banking Sector in Q4/2024:

• Bank Business Model

• Key Developments in the Banking Sector in Q4/2024:

  1. Favorable markets, trading profits surge

  2. Recovery in investment deals drives growth

  3. Industry sentiment brightens thanks to "relaxed" policies after Trump's victory

  4. Banking sector stocks “soar”

  5. Hidden Risks in the Optimistic Picture of the Banking Sector

  6. 2025 – Growth Outlook in a Cautious Context

II. Summary of Q4 Earnings of Major Banks:

1. JPMorgan Chase: Historic record

2. BofA: Explosion in Investment Banking segment

3. Wells Fargo: Focus on cost cutting

4. Morgan Stanley: Leading in Trading segment

5. Goldman Sachs: Trading and Investment Banking — A Perfect Pair

6. Citigroup: Growth momentum strengthened