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- Q4 Earnings kicked off on a strong note, with big banks such as JP Morgan, Bank of America, and Citigroup reporting strong performances during the last quarter of 2025.
- JP Morgan’s performance exceeded estimates but took a hit in profits due to a one-time charge and investment banking fees.
- Bank of America posted solid results thanks to strong performance in both its banking and trading divisions.
- Citigroup had a good quarter too, showing that consumers and businesses are feeling confident enough to borrow and lend.
Big banks kicked off Q4 2025 earnings season with some impressive numbers.
JP Morgan, Bank of America, and Citigroup all beat Wall Street’s expectations, showing strength across their main businesses, trading desks, and interest income.
Banks are riding a wave of favorable conditions right now, including eased regulations for Wall Street. Executives seem cautiously upbeat about 2026, though they’re keeping an eye on potential headwinds.
These early reports give markets a solid read on where the economy could be headed this year.
JP Morgan Chase Beats Estimates Despite One-Time Charge
JP Morgan reported a Q4 performance that topped expectations on better-than-expected revenue from the bank’s trading operations.
JP Morgan reported earnings per share of $5.23, higher than its forecast of $5, with revenue coming in at $46.77 billion, also higher than its estimate of $46.2 billion.
Profits fell 7% to $13.03 billion after the bank booked a one-off $2.2 billion charge related to taking over Apple Card loans from Goldman Sachs. ⁽¹⁾
Equities trading revenue surged 40% to $2.9 billion, around $350 million above estimates, driven by strength in hedge fund operations. Fixed income trading revenue rose 7% to $5.4 billion, also exceeding expectations. However, investment banking fees fell 5% to $2.3 billion, missing estimates by $210 million. ⁽²⁾
CEO Jamie Dimon called the US economy resilient but warned that markets seem to underappreciate the potential hazards, from complex geopolitical conditions to risks around sticky inflation and elevated asset prices. ⁽³⁾
Bank of America Posts Solid Results on Net Interest Income and Trading Growth
Bank of America’s results topped estimates due to gains from net interest income and equities trading. Earnings per share came in at $0.98, above its estimate of $0.96, with revenue climbing to $28.53 billion, also higher than its estimate of $27.94 billion. ⁽⁴⁾
Profits rose 12% to $7.6 billion as revenue climbed 7.1% to $28.53 billion, driven by rising net interest income, asset management fees and trading revenue. Net interest income rose 9.7% to $15.92 billion, rising above expectations. Equities trading revenue jumped 23% to $2.02 billion, exceeding forecasts by $160 million. ⁽⁵⁾
Fees generated by the firm’s investment bankers were roughly flat. The bank also benefited from a smaller-than-expected $1.31 billion provision for loan losses. ⁽⁶⁾
CEO Brian Moynihan expressed confidence, stating that he continues to remain optimistic on the US economy in 2025 despite rising risks. ⁽⁷⁾
Citigroup Surpasses Forecasts with Record Revenues
Citigroup also emerged as a winner among bank stocks with its Q4 results, as the lender set aside less money for troubled loans than analysts had expected.
Earnings per share came in at $1.81, higher than its forecast of $1.67, with revenue coming in at $21 billion, above analysts’ estimates of $20.72 billion. ⁽⁸⁾
Net income fell 13% to $2.47 billion due to a $1.1 billion loss from divesting Russian operations. The bank set aside $2.2 billion for loan losses, $330 million less than expected, signaling confidence in borrowers’ ability to repay. ⁽⁹⁾
Citigroup is in the midst of a restructuring, selling off parts of its overseas operations, while also benefiting from US banking deregulation. CEO Jane Fraser highlighted the bank’s progress, indicating that 2025 was a robust year that showed significant progress due to its record revenues.
Next in the Lineup: Goldman Sachs and Morgan Stanley
Goldman Sachs and Morgan Stanley will report their Q4 earnings today before the opening bell, with more optimism expected from the two banking giants.
Goldman is expected to post EPS of $11.62 on revenue of $14.50 billion, while Morgan Stanley is forecast to deliver EPS of $2.41 with revenue at $17.72 billion.
