Wall Street Investment Banks Kicked off the Earnings Season With Rising Earnings Results
Go Wire
January 16, 2025
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On Wednesday (January 15), several large US banks released their fourth-quarter (Q4) 2024 earnings reports. Due to the tailwinds of the Fed's interest rate reduction and the US election results, banks' earnings improved.
Goldman Sachs revealed that the Q4 2024 net revenues were $13.87 billion, increasing 23% year-over-year (YoY). The Q4 2024 diluted earnings per common share (EPS) was $11.95, better than $5.48 for the same period a year ago.
Goldman Sachs CEO David Solomon said at Wednesday's earnings conference that bank executives were more optimistic about the outlook of the US economy and businesses since Trump won the election. His optimism results from Trump’s promise of financial deregulations, which will boost business investment. He used to say that if Trump continues his first-term tax cuts, the economy will receive some stimulus.
Wells Fargo disclosed that the Q4 2024 net revenues were $20.4 billion, slightly lower than $20.478 billion in the year-ago quarter. The quarterly EPS was $1.43, jumping up 11% from a year ago.
JPMorgan Chase published that the Q4 2024 net revenues were $42.768 billion, growing 11% YoY. The quarterly EPS was $4.81, soaring 58% YoY.
Citigroup reported that the Q4 2024 net revenues were $19.6 billion, rising 12% from the prior-year period. The company reported a Q4 net income of $2.9 billion, versus a net loss of $1.8 billion in the same period a year earlier. The EPS was $1.34, surpassing $1.16 per diluted share in the prior year period.
Growing earnings drove bank stocks to gain in the US market on Wednesday. By the market close, Goldman Sachs (NYSE: GS) surged 6.02%. Wells Fargo $WFC/PY soared 6.69%. JPMorgan Chase $JPM rose 1.97%. Citigroup $C climbed 6.49%.
#🏦 earnings season begins! what to watch? 👀#$Wells Fargo & Company(WFC/PY)#$JPMorgan Chase & Co.(JPM)#$Citigroup Inc.(C)#InvestmentBanking#usmarket