Wall Street banks JPMorgan Chase, Goldman Sachs and Citigroup posted strong rises in profits at the end of last year, helped by a boom in trading and deal-making.
JPMorgan's net profits rose 50 percent to $14 billion, while Goldman Sachs' net profits doubled to $4.1 billion. Citi swung to a profit of $2.9 billion from a loss of $1.8 billion in the fourth quarter of 2023.
This strong performance came at a time when major banks benefited from a sharp rise in stock trading before and after the US elections, which took place on November 5. Donald Trump's victory sent stocks soaring, with investors rushing into the markets hoping for his pro-growth agenda. It would boost American companies.
Banks' investment banking units also got a boost from buoyant conditions in bond markets, with companies taking advantage of relatively low borrowing costs to raise debt. Companies also tapped stock markets, launching primary and secondary offerings to raise funds.
The profits reflected a turnaround in the fortunes of the broader American banking industry. A year ago, profits were hurt by a one-time contribution from lenders to the US Federal Deposit Insurance Fund, which was drained by the regional banking crisis in early 2023.
Citigroup shares rose more than 5 percent in pre-market trading in New York, while Goldman Sachs rose about 4 percent, and JP Morgan rose about 1 percent.
