Wall Street banks JP Morgan, Goldman Sachs post fat profits amid Trump ‘bump’

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 administration will slash red tape to boost economic growth.

JPMorgan notched a record profit of $58.5 billion, up from $49.6 billion in 2023, America’s biggest bank reported on Wednesday.

Goldman Sachs said its profits soared to $14 billion in 2024, compared to $8.5 billion a year earlier.

A resurgence in dealmaking and Donald Trump’s resounding November victory over Kamala Harris — which set off a furious Wall Street rally — helped drive profits at the end of 2024.

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“There has been a meaningful shift in CEO confidence, 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, also threw his weight behind the incoming commander-in-chief.

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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.”

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 pandemic.

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Investment banking revenue at JPMorgan rose 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.

Solomon predicted last month that dealmaking in equities, mergers, and acquisitions, could exceed 10-year averages in 2025.

Two other major banks also posted strong results.

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.

Fraser laid out a turnaround plan in 2023 to boost the bank’s bottom line and streamline its operations, as well as fixing a raft of regulatory issues.

The bank also announced a $20 billion share buyback program – equivalent to roughly 7% of its current market value – which will begin in the first quarter of 2025.

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Buying back shares drives up the price of stock because there are fewer shares up for grabs, generating greater value for current shareholders.

Wells Fargo said it had made $5.1 billion in the fourth quarter and $20 billion for the year. The bank attributed the gains to rich clients pumping money into its upmarket savings products.

The lender also pointed to a rebound in investing banking activities, saying fees jumped 59% to $725 million in the quarter compared with a year earlier.

Echoing his Wall Street counterparts, Wells Fargo CEO Charlie Scharf also moved to hail Trump’s election as a possible turning point.

“We feel optimistic about where we are going into 2025 both because of where the economy is and the strength that has existed, as well as the business-friendly approach from the incoming administration,” he said.