Major U.S. Banks Poised for $31 Billion in Quarterly Profits

The largest U.S. banks report robust trading and dealmaking gains, with optimism fueled by regulatory rollbacks under the Trump administration.

The six largest U.S. banks are expected to report $31 billion in profits for Q4 2024, a 16% increase year-over-year after excluding one-time federal deposit insurance fund contributions.
Strong trading revenues and a resurgence in investment banking, including a 26% jump in advisory fees, have driven the earnings surge.
Banks are benefiting from a steeper yield curve, which has improved net interest income through higher long-term lending margins.
Investors are optimistic about the impact of deregulation and reduced scrutiny on mergers, but concerns remain over inflation and potential Federal Reserve rate hikes in 2025.
Analysts highlight improved capital levels and asset quality, with major banks expected to retain more earnings as they scale back on rainy-day reserves.