The day has arrived major US banks who have officially opened the quarterly season with more than positive numbers that in all cases beat analysts' expectations. And the stock market reacted immediately with stocks rising sharply: Goldman Sachs (+ 3,19%), Blackrock (+ 3%), JP Morgan (+ 2,4%) Wells Fargo (+ 1,68%).
Goldman Sachs: Profits double in Q4
Goldman Sachs’s profit more than doubled in the fourth quarter, helped by higher revenue from M&A fees, debt sales and a robust trading business.
In detail, profit rose to 4,11 billion of dollars, or $11,95 per diluted share, for the three months ended Dec. 31, compared with $2,01 billion, or $5,48 per diluted share, seen a year ago.
Banking managers expect more deal-making activity this year, as the U.S. Federal Reserve cuts interest rates and President-elect Donald Trump’s pro-business comments fuel investor optimism.
“We are very pleased with the strong results achieved in the quarter and in the year,” said the CEO David Solomon in a statement. “I am encouraged that we have met or exceeded nearly all of the goals we set out in our corporate growth strategy five years ago.”
Le investment banking fees Goldman's total assets rose 24% to $2,05 billion in the fourth quarter as debt underwriting benefited from a strong sell-off in corporate and leveraged bonds.
JP Morgan's quarterly results: earnings up 50% in Q2024, record profits in XNUMX
JP Morgan closed the fourth quarter of 2024 with a Net income of $14 billion, up more than 50% compared to the same period in 2023. Revenue grew by 11% to 43,7 billion, while earnings per share stood at 4,81 dollars: both figures are above the market forecasts, which stood at 41,73 billion and 4,11 dollars per share, respectively.
In the whole 2024 profit hit record high of $58,5 billion, rising 18% from $49,6 billion a year earlier. The driving force behind the results was the Commercial & Investment Bank division, which achieved a 59% increase in profit in the fourth quarter to $6,6 billion. Investment banking fees jumped 49% and trading revenues jumped 21%, beating management forecasts. Positive indications also come from the forecasts for 2025, when the bank expects to record an interest margin of $94 billion, compared to the $91 billion forecast by analysts' consensus.
“Geopolitical conditions remain the most dangerous and complicated since World War II,” warns the CEO of the banking giant Jamie Dimon, commenting on JP Morgan's fourth-quarter results. The geopolitical situation is one of two "significant risks" flagged by Dimon: the other is related to "current and future spending needs that are likely to be inflationary". As a result, 'inflation could persist for some time". "As always - the manager concluded - we hope for the best but we prepare the bank for a wide range of scenarios".
Citigroup returns to profit
Citigroup delivered above-estimates for its full-year and quarterly results, thanks to broad-based growth across all business areas and a reduced impact from currency devaluations in Argentina.
In detail, the New York bank recorded in the fourth quarter profits of $2,9 billion, $1,34 per share, compared to a loss of $1,8 billion, -$1,16 per share, in the same period of 2023 (when the result was impacted by extraordinary items). Revenue rose 12% to $19,581 billion, beating analysts' forecasts for earnings of $1,24 per share on a turnover of $19,49 billion. For the full year Citi saw profit rise 37% at 12,682 billion, with revenues up 3% to 81,139 billion, again better than estimates.
“2024 was a critical year and the results demonstrate that our strategy is delivering the expected results and stronger performance of our businesses,” said the CEO, Jane Fraser, stressing that “we exceeded our full-year revenue guidance, with records in Services, Wealth and Personal Banking. Expenses were within guidance and we improved our efficiency ratio, completing a significant reorganization within the group.” Citigroup returned nearly $7 billion in capital to shareholders and the board authorized a $20 billion share buyback program. “We entered 2025 with momentum across our businesses and continue to strengthen our ability to serve clients,” Fraser added.
Blackrock's quarterly report: assets under management to exceed $2024 billion in 11.000
For Blackrock, 2024 was a year to remember with $11.000 trillion in assets under management. Last year the AuM rose by 15% at 11.551 billion, with a record net inflow of 641 billion, of which 281 billion in the fourth quarter.
Over the entire year the group reported a net profit of 6,369 billion, $42,01 per share, up 16% from $5,5 billion, or $36,51 per share, in 2023.
I Annual revenues rose 14% to $20,407 billion, thanks to the positive impact of the markets on average AuM, the increase in fees and revenues from technology services. Net income in the fourth quarter rose 21% to $1,67 billion, or $10,63 per share, compared to $1,375 billion, or $9,15 per share, in the same period of the previous year. Revenue for the final period of the year rose 23% to $5,677 billion.
“BlackRock delivered record net new money of $641 billion in 2024, including $281 billion in the fourth quarter, with two consecutive quarters of record flows. 2024 was also a pivotal year for strategic acquisitions,” said the CEO Laurence Fink, underlining that “the closing of the operation on Gip and the planned acquisitions of Hps and Preqin are destined to significantly strengthen investments in private markets”.
Wells Fargo: Q4 earnings beat expectations
In the last three months of 2024, Wells Fargo recorded net earnings of $5,1 billion, or $1,43 per share, compared to $3,446 billion in the corresponding period of 2023 ($0,86 per share). Revenues were flat at $20,37 billion in the period. Earned profits exceeded analysts' forecasts while revenues were slightly below expectations.
Broadening the horizon to the whole 2024, net profits amount to 19,7 billion of dollars ($5,37 per share), up from $19,14 billion a year ago ($4,83 per share).
Commenting on the results, CEO Charlie Scharf highlighted that the group returned approximately $25 billion of capital to shareholders and made “significant progress” in risk control activities: “Diluted earnings per share increased by 11% year-on-year and benefited from decisions taken to exit or downsize certain businesses, reduce dependence on net interest income by increasing fee income, increase investment in core businesses and continuously seek to increase efficiencies within the group”. The institution, he continued, maintained a significant level of excess capital with a Cet1 ratio of 11,1% at the end of 2024 and repurchased shares for approximately $20 billion (+64% on the previous year) in addition to improving the dividend per share by 15%.
