What We Learned From Big Bank Earnings Last Week [Video]

The largest U.S. banks posted substantial fourth-quarter revenue and profit gains thanks to a resurgence in Wall Street dealmaking.

Investment banking revenue soared compared to the same quarter a year ago, with the largest banks all reporting increases of 25% or more. The two biggest, JPMorgan Chase (JPM) and Bank of America (BAC) led the way with whopping gains of 49% and 44%, respectively.

Investors cheered the results. The SPDR S&P Bank ETF (KBE) gained more than 8% last week, recovering most of the decline posted since early December, as shares of JP Morgan, Wells Fargo (WFC), Citigroup (C) and other banks surged.

That December downturn mirrored broader stock market concerns centering on lingering inflation pressure and how the Federal Reserve may respond. While that anxiety persisted into 2025, last week’s results offered a measure of comfort for investors in big banks.

The investment banking growth …