Wall Street’s biggest banks raked in eye-popping full-year profits last year as America’s financial titans rode a ‘Trump bump’ amid optimism his next administration will slash red tape to boost economic growth.
Senior executives at some of this nation’s top lenders pointed to the real estate mogul’s resounding November victory over Kamala Harris as having helped to drive profits at the end of 2024.
Their comments came after Goldman Sachs, JPMorgan, Wells Fargo, and Citi all announced their financial results for the past 12 months, as well as the fourth quarter of last year.
JPMorgan saw its net profits rise to a record $58.5 billion from $49.6 billion in 2023, while Goldman Sachs reported profits of $14 billion for 2024, compared to $8.5 billion a year earlier.
The Jamie Dimon-led bank posted $14 billion in profits in the fourth quarter of 2024, compared with $9.3 billion for the same period in 2023, while Solomon’s firm said its fourth-quarter profits rose to $4.1 billion, compared with $2 billion year-on-year.
Dealmaking in the Big Apple has seen a revival over the past six months after central bankers at the Federal Reserve slashed interest rates.
Lower rates make it cheaper for major corporations to borrow the money that finances their merger and acquisition activity.
“There has been a meaningful shift in CEO conference, particularly following the results of the US election,” Goldman CEO David Solomon told analysts in an investor relations call.
“There is a significant backlog from sponsors and an overall increased appetite for dealmaking, supported by an improving regulatory backdrop,” he added. “It feels like we have a tailwind going into 2025.”
But Solomon added there was still “uncertainty” about Trump’s immigration, trade and tax policies.
Jamie Dimon, the chief executive of crosstown rivals JPMorgan, echoed Solomon’s remarks.
The 68-year-old Queens native said Trump’s election victory had left American companies feeling “encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business.”
He also struck a word of caution, pointing to the possible risks of inflation and excessive government spending.
Dimon had reportedly been eyeing a job in a Kamala Harris administration, but as the Post exclusively reported Trump’s inner circle used him as “a sounding board” for drafting his economic policies.
He turned on the current Biden administration in recent months, slamming its approach to regulating the banking sector and singling out a blueprint that would force banks to hold more emergency capital on their balance sheets.
Dimon told analysts: “This is not about weakening regulation … but rather about setting rules that are transparent, fair, holistic in their approach and based on rigorous data analysis.”
Both Wall Street giants reported a surge in investment banking fees on Wednesday in a nod to the flurry of activity that had initially ground to a halt in 2021 at the height of the Covid-19 global pandemic.
Investment banking revenue at JPMorgan rose by 46% from 2023 to $2.6 billion; Goldman Sachs pointed to a 24% jump in fees from the previous year to hit $7.7 billion which was driven in part by its debt underwriting activities.
Goldman’s Solomon predicted last month that dealmaking in equities, mergers, and acquisitions, could exceed 10-year averages in 2025.
Goldman shares were up by just over 1% Wednesday morning, hitting $571.53 just after the full-year financial results were released.
JP Morgan stock remained largely unchanged just after the opening bell, sitting at 247.47.
Two other major banks also posted strong results.
Wells Fargo said it had made $5.1 billion in the fourth quarter and $20 billion for the year. The bank pointed to rich clients pumping money into its upmarket savings products.
Citi, led by Jane Fraser, reported net profits of $2.9 billion in the fourth quarter of 2024, and $12.7 billion overall for the full year.
