JPMorgan Chase, Goldman Sachs, Citi and Wells Fargo all reported fourth-quarter earnings Wednesday, and each banking behemoth seemed to come with an update to major threads in their narratives. Here are seven takeaways:
1. ‘Animal spirits’
Take your pick: Each of the major banks had numbers to celebrate Wednesday.
JPMorgan reported $14 billion in profits in the fourth quarter, and nearly $59 billion for the full year. Wells Fargo made $5.1 billion in the fourth quarter and $20 billion for the year. Goldman reported $4 billion and $14 billion for 2024. And Citi reported net income of $2.9 billion in the quarter and $12.7 billion for the full year.
There’s “no question that we are in an ‘animal spirits’ moment right now,” JPMorgan CFO Jeremy Barnum told analysts.
2. Election optimism
The earnings reports come, of course, less than a week before Donald Trump is set to return to the White House. That development is overwhelmingly seen as a boon for business.
“There has been a meaningful shift in CEO confidence, particularly following the results of the U.S. election," Goldman CEO David Solomon told analysts. For his bank, he added, “there is a significant backlog from sponsors and an overall increased appetite for dealmaking, supported by an improving regulatory backdrop."
Robin Vince, CEO of BNY, which also reported earnings Wednesday, hedged a bit.
“There are clearly uncertainties with the incoming administration,” Vince said. “They’re very pro-growth, and that should be a good thing for the economy, but there are still uncertainties. You’ve got a bunch of folks who haven’t yet landed in their seats.”
JPMorgan CEO Jamie Dimon noted “geopolitical conditions remain the most dangerous and complicated since World War II.”
3. Dimon timeline
Analysts asked Dimon if Tuesday’s executive reshuffle at JPMorgan pushed back any plans for retirement.
“It doesn't change the timeline at all. That's more of a natural progression," Dimon said.
Jennifer Piepszak, once seen as a front-runner to succeed Dimon, indicated Tuesday she’d take a chief operating officer role at JPMorgan but was not interested “at this time” in being a CEO candidate.
"If you are talking [about remaining CEO] four to five years or more, I will be 69 in March, I think it is the rational thing to do,” Dimon said Wednesday, according to Reuters. “I have got a couple of health problems, I just figured it makes a lot of sense.”
4. Dimon on deregulation
With Trump’s return to the presidency, the feeling, too, is that the banking sphere may see deregulation in general, which Dimon appeared to welcome Wednesday.
“Most people realize there is a huge need to take a step back and look at the Byzantine, Balkanized system we’ve built, which has negatives,” Dimon said. “Even the regulators say that. So take a deep breath, do the right thing, and continue to have the best financial system in the world.”
5. Goldman’s partnership with Apple
For as much emphasis as there was on Goldman’s successes Wednesday, Solomon took time to address a long-running thorn in the bank’s side: its Apple Card partnership.
"We have a contract with Apple to run that partnership until 2030, although there's some possibility that it won't continue until that time frame," Solomon said.
Goldman's Platform Solutions unit, which houses the partnership, took an $859 million loss for 2024, the bank said.
But Solomon reassured analysts that the bank’s focus is in the right place.
“I’m encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago,” he said.
6. Wells downsizing
Wells Fargo took a $647 million severance charge for the fourth quarter as expenses dropped 12%. The bank’s headcount dropped by 8,500 in 2024 to about 217,500.
We are still in the early stages of seeing the benefits of the momentum we are building, and our financial performance should continue to benefit from the work we are doing to transform the company,” CEO Charlie Scharf said Wednesday.
7. Citi’s stock buyback
Citi said Wednesday it will repurchase $20 billion worth of its stock in the coming years, a move executives anticipate may instill confidence in investors – even if the bank hasn’t reached its long-standing goals. The bank’s return on tangible common equity in 2024, for example, stood at 7%.
“This level is a waypoint, not a destination,” CEO Jane Fraser said in the statement. “We intend to improve returns well above that level and deliver Citi’s full potential for our shareholders.”
When she took the helm of the bank in 2022, Fraser told investors she would need five years to execute her vision.
“2024 was a critical year and our results show our strategy is delivering as intended,” Fraser said in a statement Wednesday. “We entered 2025 with momentum across our businesses.”
