The largest U.S. banks delivered robust revenue and profit growth in the fourth quarter of 2024, buoyed by continued sharp growth in investment banking income. JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Bank of America (NYSE: BAC), and Citigroup (NYSE: C) all posted double-digit gains in investment banking revenue in Q4 2024 compared with the same period a year earlier. JPMorgan Chase and Bank of America led the pack, with year-over-year increases of +48% and +44%, respectively.
The resurgence reflects a rebound in securities underwriting and mergers and acquisitions, which had slowed following the U.S. Federal Reserve’s aggressive interest rate hikes beginning in March 2022. With the Fed having eased rates three times since September, analysts anticipate sustained strength in investment banking revenues throughout 2025, providing a cushion against moderating net interest income growth.