Wall Street Banks Poised for $157 Billion Profit Amid Sustained Trading Activity
Wall Street's six largest banks—JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley—are projected to report a collective $157 billion profit, marking a 9% increase from last year. This WOULD represent their strongest performance since 2021, when stimulus measures and robust deal volume buoyed earnings. Bank stocks rallied through most of 2023 and into January, though JPMorgan's warning about rising costs triggered a brief sell-off in December.
Trading desks remained active as clients adjusted positions in response to shifting U.S. policy signals. The volatility generated steady fee income, offsetting softer loan growth in the first half of the year. RBC's Gerard Cassidy noted corporations have grown adept at navigating political uncertainty. Deal activity accelerated sharply in the second half, with advisory teams securing roles on major transactions.
