If you thought the only people crushing it this January were gym influencers and "new year, new me" LinkedIn posters, think again—Wall Street's heavy hitters just reminded everyone why they’re the varsity squad of capitalism. JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo dropped their Q4 earnings on Wednesday, and spoiler alert: they did not come to play. Occupy Wall Street is somewhere crying into its old Guy Fawkes masks.

(Source: Business Insider) 

Leading the charge of the frenzy was the nation's largest bank: JPMorgan Chase. The bank posted $14 billion in profits for Q4, bringing its 2024 haul to an absurd $59 billion. That’s right, Jamie Dimon and his crew just made more in one year than the GDP of some small nations. Earnings per share came in at $4.81, blowing past Wall Street’s $4.09 forecast.

The secret sauce? Investment banking fees jumped 49%, market revenue rose 21%, and assets under management climbed 18% to hit a nice $4 trillion. Sure, net interest income (the bread and butter of banking) dipped 3%, but who cares when your investment bankers are printing money like it’s 2006?

(Source: New York Times) 

On another note: Dimon, who somehow found time between making billions and doing CBS Sunday Morning interviews, hinted he might stick around as chairman when he steps down as CEO. Translation: Jamie ain’t f**king leavin’! 

Additionally, Goldman Sachs’ numbers were so good, they probably had Lloyd Blankfein considering a comeback. Earnings per share skyrocketed to $11.95 from last year’s $5.48, while net revenue surged 23% to $13.87 billion, leaving analysts’ $12.36 billion estimate in the dust. Goldman’s Global Banking & Markets division crushed it with a 33% revenue jump, while equities revenue soared 32%. Even the asset and wealth management side got in on the action, climbing 8%. The bank also trimmed its provision for credit losses to $351 million, down from $577 million last year.

(Source: IBD) 

Naturally, this had shares popping 6% on the day, because, honestly, when you double earnings like that, the market has no choice but to clap.

On the other hand, Wells Fargo—who still has that bit of an “embarrassing cousin at the family reunion” energy thanks to its years of scandals—also staged a comeback. Wells posted Q4 earnings of $1.43 per share, up from $0.86 last year, just edging out expectations. Revenue, however, dipped slightly to $20.38 billion, missing Wall Street’s $20.58 billion target. Net interest income fell 7% for the quarter, but hey, nobody’s perfect.

The real opportunity though is Wells Fargo’s 2025 guidance, which forecasts net interest income to increase 1% to 3%. Analysts are hyped, with one Edward Jones analyst calling the bank "better managed" and pointing to its improving profitability.

(Source: Giphy)

What’s more is that Citigroup decided to remind everyone it’s still in the game with Q4 earnings of $1.34 per share, beating expectations of $1.22. Revenue climbed 12% to $19.58 billion, also topping forecasts. But Citi’s major catalyst was their audacious $20 billion stock buyback program. Shares jumped 6.5% on the news, because Wall Street loves nothing more than a fat buyback announcement.

So with that, what can we learn from this? Well according to JPMorgan CFO Jeremy Barnum, who whipped out a vintage John Maynard Keynes reference, called this an "animal spirits" moment for the economy. Translation: People are optimistic, deals are flowing, and everyone’s making money.

(Source: Reuters) 

Simply put, banks are riding high on strong corporate financing activity, solid market revenue, and a "business-friendly" vibe surrounding the incoming administration. Goldman’s already cashing in by offloading some of its "historical principal investments" (a fancy way of saying old assets) at a profit, while JPMorgan and Citi are pumping up M&A activity like it’s a Shake Weight.

So yeah, the big banks didn’t just beat expectations; they crushed them, while also reminding everyone that they are the backbone of the economy. Especially since Wells Fargo, the problem child of the group, is starting to clean up its act and show some promise.

(Source: Giphy) 

Meaning, with inflation cooling, Grandpa Powell chilling, and deal-making back in full swing—the financial sector is looking primed for a strong 2025. If you’re a shareholder, congrats—your portfolio probably feels like it just hit the jackpot. If you’re not, well, click here to join Stocks.News premium to get that thicc and juicy competitive “edge” everyone is talking about. 

In the meantime, do what you will with this information and place your bets accordingly, friends.  As always, stay safe and stay frosty! Until next time… 

Stocks.News does not hold positions in companies mentioned in the article.