Wall Street banks JP Morgan, Goldman Sachs post fat profits amid dealmaking surge, Trump bump

America’s biggest banks posted bumper full-year profits on Wednesday amid an ongoing resurgence in Wall Street dealmaking activity and increased optimism about the incoming Trump administration’s economic policies.Jamie Dimon-led JP Morgan saw its net profits rise to a record $58.5 billion from $49.6 billion in 2023, while David Solomon’s Goldman Sachs reported profits of $14 billion for 2024, compared to $8.5 billion a year earlier.Both banking titans were boosted by a series of interest rate cuts that made it cheaper for major corporations to borrow money, prompting more mergers and acquisitions in 2024.JPMorgan’s investment banking revenue rose by 46% from 2023 to $2.6 billion; while Goldman Sachs pointed to a 24% jump in fees from the previous year to hit $7.7 billion that was driven in part by its debt underwriting activities.Goldman also said that its fourth-quarter profits rose to $4.1 billion, compared with $2 billion year-on-year, while crosstown rivals JPMorgan posted $14 billion, compared with $9.3 billion for the same period in 2023.“There has been a meaningful shift in CEO conference, particularly following the results of the US election,” Goldman Sachs CEO David Solomon told analysts in an investor relations call.“There is a significant backlog from sponsors and an overall increased appetite for dealmaking, supported by an improving regulatory backdrop,” he added.“The US economy has been resilient,” Dimon, CEO of America’s largest bank, said, citing low unemployment and healthy consumer spending.”He added that Donald Trump’s election victory had left American companies feeling “encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business.” That optimism has seen US stock markets rally since the election on Nov.5 amid hope that Trump will slash red tape in order to boost growth.Goldman shares were up by just over 1% Wednesday morning, hitting $571.53 just after the full...

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Publisher: New York Post

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