US Banks Defy Recession Fears, Post $145.68 Billion in 2024 Profits

NEW YORK — Six of the largest U.S. banks collectively generated $145.68 billion in profits in 2024, marking a 20% increase from the previous year and defying widespread recession fears and geopolitical uncertainty. JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, and Citi reported strong performances driven by investment banking, dealmaking, and consumer banking activity.

JPMorgan Chase led the group with a net income of $58.5 billion, including $14 billion in the fourth quarter alone. CEO Jamie Dimon attributed the success to a resilient U.S. economy, stating, “Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda.”

Bank of America followed with $27.1 billion in net income, bolstered by strong fee earnings. Wells Fargo reported $19.7 billion in profits, driven by double-digit growth in trading and investment banking. Goldman Sachs recorded $14.28 billion in net earnings, ranking among the top global firms in mergers and acquisitions. Morgan Stanley posted $13.4 billion in net income, citing “strong results” across its business segments, while Citi earned $12.7 billion, fueled by record performances in its Services, Wealth, and US Personal Banking divisions.

According to market analysis firm FactSet, the combined profits represent the second-highest earnings in 17 years. High interest rates, a strong economy, and a rebound in dealmaking were key factors behind the banks’ success. The six banks generated over $250 billion in net interest income, defined as the difference between interest revenues and interest expenses.

Investment banking revenues also saw a significant uptick, rising 26% year-over-year in the fourth quarter. Trading revenue reached $123 billion for the full year, a 10% increase from 2023. Analysts noted that Wall Street sentiment improved under the incoming Trump administration, with expectations of reduced regulatory oversight and increased dealmaking opportunities.

For investors seeking exposure to the U.S. financial sector, exchange-traded funds (ETFs) such as the Solactive Equal Weight US Bank Index and the S&P Financial Select Sector Index offer targeted investment options. These ETFs provide access to U.S. banks, insurers, and financial institutions, reflecting the sector’s robust performance.

The banks’ success underscores the resilience of the U.S. financial system amid global challenges, setting a positive tone for the year ahead.