The largest U.S. bank JPMorgan’s net income surged 50% to over $14 billion in the fourth quarter as its profit and revenue easily beat Wall Street expectations, and other major lenders also reported standout earnings for the year.
Earnings per share rose to $4.81 from $3.04 a year ago. The result beat Wall Street profit projections of $4.09 a share, according to the data firm FactSet. Total managed revenue hit $43.7 billion, up 10% from $39.9 billion a year ago. Wall Street was expecting revenue of $41.9 billion.
JPMorgan's profit for the whole of 2024 rose 18% to $58.5 billion.
JPMorgan CEO Jamie Dimon said the bank got a boost from the investment banking business, where fees rose 49% and trading revenue jumped 21%, surpassing executives' forecast in December.
The bank’s consumer banking business also thrived, with clients opening nearly 2 million checking accounts.
The New York bank set aside $2.6 billion to cover bad loans, down slightly from the same period a year ago.
JPMorgan shares climbed 1.8% in premarket trading on Wednesday. They ended 2024 with a nearly 41% gain, outperforming the benchmark S&P 500.
Wells Fargo also topped profit expectations Wednesday with a nearly 50% jump in net income, with earnings of $5.1 billion in the fourth quarter, or $1.43 per share.
Revenue came in at $20.4 billion, a touch lower than expectations. In the same quarter a year ago, Wells posted net income of $3.4 billion, or 86 cents per share, on $20.5 billion in revenue.
In September, Wells Fargo agreed to work with U.S. bank regulators to shore up its financial crimes risk management, including internal controls related to suspicious activity and money laundering.
The agreement came just seven months after the Biden administration lifted a consent order on the bank that had been in place since 2016 following a series of scandals, including the opening of fake customer accounts.
Wells rose 3.2% before markets opened.
Goldman Sachs also beat Wall Street expectations, posting its biggest profit since the third quarter of 2021, driven by bankers who brought in more fees from dealmaking, debt sales, and strength in trading.
The investment bank's shares rose 2.6% before the bell as it earned $11.95 per share in the fourth quarter, compared with $8.22 expected by analysts, according to estimates compiled by LSEG.
The Wall Street giant scored quarterly profits of $3.9 billion, up 110% from the year-ago level on revenues of $13.9 billion, which were up 23%.
Goldman's investment banking fees rose 24% to $2.05 billion in the fourth quarter, powered by debt underwriting that benefited from strong leveraged finance and corporate bond sales.
For 2024, Goldman earned a profit of $40.54 per share versus $22.87 a year earlier. The bank's overall revenue rose 16% to $53.51 billion.
Goldman shares ended 2024 with a 48.4% surge, the biggest rise among the six biggest U.S. lenders, and handily surpassed the market benchmark.
JPMorgan's Dimon said the U.S. economy remains strong, noting the nation's low unemployment and strong consumer spending. Still, he cited risks: government spending, inflation, and geopolitical conditions.
"Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business,” he said, alluding the an incoming Trump administration that has promised to cut regulations across industries.
Dimon said that any regulation should balance promoting growth and keeping the banking system safe. "This is not about weakening regulation... but rather about setting rules that are transparent, fair and holistic in their approach and based on rigorous data analysis, so that banks can play their critical role in the economy and markets.”
Dimon, however, said that the state of geopolitics "remains the most dangerous and complicated since World War II” and that JPMorgan is preparing for a wide range of outcomes.
Dimon said the bank's succession timeline was unaffected by one of the leading contenders to become CEO, Jennifer Piepszak, taking herself out of the running for now.
Piepszak will become chief operating officer. She will succeed Daniel Pinto, a top lieutenant of Dimon and a four-decade veteran at the investment bank, who will retire at the end of 2026.
"It doesn't change the timeline at all. That's more of a natural progression," Dimon said on a post-earnings call with reporters.
JPMorgan's board has identified candidates to take over after Dimon, who has run the bank for 19 years. The CEO has said that succession planning is his most important task. In May last year, he said the timeline was less than five years and could be between 2.5 and 4.5 years.
The contenders to succeed him include Marianne Lake, CEO of consumer and community banking, Troy Rohrbaugh, co-head of the commercial and investment bank and Mary Erdoes, CEO of asset and wealth management.
