🎉Global Major Banks Profit Reach 3-Year High: Good For Stock Market
1. Financial giants show read profit in 3 years, and the outlook remains optimistic
As of January 16, Eastern Time, the six major US banks: $Citigroup(C)$ , $JPMorgan Chase(JPM)$ , $Wells Fargo(WFC)$ ,$Goldman Sachs(GS)$ , $Morgan Stanley(MS)$ , $Bank of America(BAC)$, all released earnings reports that exceeded expectations.
Comprehensive market analysis shows that Wall Street giants achieved record profits and asset growth in the fourth quarter of 2024, mainly due to the continued active trading of the US stock market in the fourth quarter of 2024, the interest rate cuts in November and December helped reduce bank costs, and Trump is about to take office. The market expects financial supervision to be loosened, and the investment banking business has increased significantly, which has driven the overall banking industry's earnings to increase.
See the comprehensive performance chart:
After the financial reports were released, most of the above banks’ stock price rose and some even hit all-time highs($JPMorgan Chase(JPM)$ ).
Looking back at 2024, the $.SPX(.SPX)$ rose 23.3% throughout the year, setting 57 all-time closing highs. The strong performance of the stock market has driven the growth of bank-related business income, mergers and acquisitions have recovered from the decade low in 2023, and Wall Street profits have rebounded in 2024.
The good Q4 financial report data of the US financial banking giant in 2024 has many optimistic forward-looking indicators for the US stock market and the US macro-economy.
From a market perspective, the bank stock financial report data exceeded expectations, which played a key role in boosting the financial sector and stabilizing the market index. It will also drive the market to improve expectations for other companies' performance, which will help more funds flow into the stock market, drive up stock prices, and promote story prosperity.
From a macro perspective, the good bank stock financial report data is also a reflection of the resilience of the US economy, active consumption and investment, and the active market, which is also a reflection of the interest rate environment. Only when the economic environment is good, corporate financing demand is strong, the unemployment rate is still at a relatively low level, and consumer spending remains healthy, can a good macroeconomic environment be provided for the stable development of the banking industry. The incoming Trump administration will also implement policies that are conducive to business, making the development and profit prospects of the banking industry in 2025 more optimistic.
Market analysts believe that dealmaking activity will be stronger in 2025, driven by the pro-business policies vowed by US President-elect Trump. In addition, the easing of the interest rate environment is also expected. With the help of AI intelligence, the labor costs of the banking industry will continue to decline and operational efficiency will increase. The overall profitability of the banking industry will continue.
🎁Do you hold relevant bank stocks? US bank stocks or Singapore bank stocks? $STI.SI(STI.SI)$
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2. Here are the Q4 2024 revenue growth highlights for the six major banks:
Net Interest Income: $13.733 billion, a slight decrease from $13.824 billion in Q4 2023.
Investment Banking: Revenue reached $925 million, up 35% year-on-year. Citi had previously anticipated a 25%-30% year-on-year increase in investment banking expenses for the quarter.
Wealth Management: Revenue was $2 billion, up 20% year-on-year, with non-interest income rising 22% and net interest income increasing 20%.
Net Interest Income: $90 billion (excluding market business), a slight increase from 2023.
Investment Banking: Revenue was $1.76 billion.
Wealth Management: Revenue was $5.8 billion, up 13% year-on-year.
Net Interest Income: $2.35 billion, up 75% year-on-year and exceeding the market expectation of $2.11 billion.
Investment Banking: Revenue was $2.06 billion, up 24% year-on-year and higher than the market expectation of $2 billion.
Wealth Management: Total revenue from asset and wealth management business in Q4 2024 was $4.72 billion, up 8% year-on-year. This growth was mainly driven by an increase in management and other fee income, reflecting the impact of the rise in the average size of entrusted assets.
Net Interest Income: $11.84 billion in Q4 2024, down 7% from the same period in 2023 but higher than analysts' expectations of $11.69 billion.
Investment Banking: Revenue was $725 million in Q4 2024, up 59% year-on-year.
Wealth Management: Non-interest income from wealth management business increased by 11% in Q4 2024, primarily due to an increase in asset-based fees in wealth and investment management business and improved risk investment returns.
Net Interest Income: $2.55 billion in Q4 2024, up 34% year-on-year from $1.9 billion in the same period of 2023.
Investment Banking: Revenue was $1.64 billion in Q4 2024, up 25% year-on-year.
Wealth Management: Revenue was $7.48 billion in Q4 2024, up 13% year-on-year and exceeding expectations by $120 million.
Net Interest Income: $14.36 billion in Q4 2024, higher than the expected $14.12 billion and up 3% year-on-year.
Investment Banking: Revenue rose 43% year-on-year to $1.69 billion in Q4 2024.
Wealth Management: Global wealth and investment management revenue was $6 billion in Q4 2024, up 15% year-on-year.
3. The 2024 Q4 earnings season is off to a good start. Do you have any other chances to bet on?
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