The biggest banks in the U.S. are expected to report this week that they drove far higher profits in the fourth quarter than they did a year ago, thanks to solid consumer spending, higher stock prices and trading activity, and a dealmaking pick-up undergirded by a strong economy.
On Wednesday, three of the four largest U.S. banks—JPMorgan Chase, Wells Fargo, and Citigroup—will report their earnings for 2024 and the fourth quarter, as will Goldman Sachs, the sixth-largest lender. Bank of America and Morgan Stanley are due to report on Thursday morning.
Wall Street analysts’ expectations for higher earnings relative to a year ago also reflect payments the banks made to a Federal Deposit Insurance Corp.-administered fund in 2023 following the regional bank failures that year. Those required payments, known as “special assessments,” dented lenders’ earnings in late 2023.