CALL US +27 21 002 8871
English English
CapeCapitalGroup
  • Markets
  • Press
  • Company
  • AML
  • Contact
Big Banks Year-End Report to Guide Market
  • News

Big Banks Year-End Report to Guide Market

Some of the largest U.S. banks are set to report their year-end earnings with significantly higher profits with solid consumer spending, rising stock prices, and increased trading activity. JPMorgan Chase, Wells Fargo, Citigroup, Goldman Sachs, Bank of America, and Morgan Stanley are among those releasing their earnings this week, with analysts expecting healthy profit growth compared to the previous year. However, these gains are partly due to one-off payments made to the Federal Deposit Insurance Corporation (FDIC) in 2023, which impacted earnings that year. Aside from the expected year-over-year increase, analysts predict a modest decline in profits from the third quarter, primarily due to lower fee income, flattening net interest margins, and higher expenses.

Investors will closely monitor the earnings reports for any adjustments in annual guidance, particularly in light of the December jobs report and the stratagem to navigate Trump policy. A resilient U.S. economy and higher interest rates have supported bank profits thus far, but they also pose a risk, such as increased borrowing costs for clients and interruptions in deal-making activities. The pickup in mergers and acquisitions, promoted by lower interest rates in the fall, is expected to boost investment banking revenues, with Jefferies' recent earnings serving as a positive indicator for the larger banks.

As earnings season kicks off, market participants will also watch for signs of loan growth, which has been weak in recent quarters due to high interest rates. Analysts like Kenneth Leon from CFRA Research anticipate positive loan growth and moderate gains in net interest income, supported by a strong economic backdrop. The performance of these banks could set the tone for the broader market, with their stocks already reflecting optimism about future growth under a new U.S. administration. However, any negative surprise in the earnings reports could lead to high market volatility, given the current expectations could have been priced into bank stocks.

Source: Reuters, FRED, FT, Barrons
Photo: Unsplash

Next article Learn more

Created by professionals.
For retail and professional clients.

Contact us
LOGO

Risk Warning: Our services include products that are traded on margin and carry a risk of losing all your initial deposit. Before deciding to trade on margin products offered by CAPE CAPITAL GROUP (PTY) Ltd. you should consider your investment objectives, risk tolerance and your level of experience on these products. Trading with a high leverage level you can either sustain losses or gains on your funds. Margin products may not be suitable for everyone, and you should ensure that you understand the risks involved. You should be aware of all the risks associated regarding products that are traded on margin and seek independent financial advice, if necessary. Please consider our Risk Disclosure. This website is owned and operated by CAPE CAPITAL GROUP (PTY) Ltd.

Licences and Authorisations: CAPE CAPITAL GROUP (PTY) Ltd. is authorised and regulated by the Financial Sector Conduct Authority (FSP no. 50206).

Cape Capital Group does not offer its services to residents of certain jurisdictions such as the USA, Iran, Cuba, Sudan, Syria and North Korea.


Legal Documents: Terms and Conditions, Website Legal Notice, Cookie Policy, Conflicts of interest, Risk Disclosure, Privacy Policy, Order of Execution Policy, Internal Complaints Management Policy, Disclosure Letter

© 2025 CAPE CAPITAL GROUP (PTY) Ltd.