Thursday, 16 January 2025 Reading time : 3 minutes

Business is booming for the major US banks as the earnings for the fourth quarter, and thus for the full year, announced by the Wall Street heavyweights this week illustrate. 

The cumulative annual profits of JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo topped USD 100 billion for the second time ever, according to an analysis by data provider Bloomberg. This threshold was exceeded for the first time in 2021.

The four financial institutions announced their earnings before the start of trading on Wednesday, and some of them reported record figures. JPMorgan Chase became the first US bank to post an annual profit of more than USD 50 billion. Citigroup also reported record results in three out of five business segments, according to Bloomberg. Banks benefited from high trading activity, particularly around the US presidential election and Donald Trump's victory on 5 November, writes the Financial Times. 

After posting their earnings, shares of financial institutions were in demand on Wall Street. Stocks of Wells Fargo, Citigroup and Goldman Sachs all posted daily gains of more than 6% on Wednesday, while JPMorgan Chase's shares climbed almost 2% to an all-time high. The broader market, as measured by the S&P 500 index, rose 1.8%.

The Barrier Reverse Convertible on US banks is suitable for investors who expect the prices of the underlying securities to move sideways. The product has a barrier of 65% and pays an annual coupon of 10.00%.  

Barrier Reverse Convertible on US Banks
10.00% p.a. BRC on JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo
Barrier: 65%
Valor: 140 250 911

Indicative terms

 

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