Q4 2024 Bank Earnings Overview

Overview earnings performance for Q4 2024

Strong Q4 2024 Earnings Quarter for Big Banks Earnings

Broader trend of strong performance in the banking sector, fueled by increased deal-making, investment banking activity, and a positive economic outlook. The anticipation of a looser regulatory environment under the new administration and potential Federal Reserve interest rate cuts are expected to further enhance the financial sector’s performance in 2025.

Since bank earnings are a barometer for the earnings season, it does suggest we could see a strong and above-expectations quarter again.

Some common trends among banks:

  • Earnings beat expectations, driven mainly net interest income better than expected. It is likely to grow further in 2025 with a positive yield curve.
  • Fee income and investment banking showed strong results, supported by a rebound in deal activity after 2023. This should continue with the economic outlook and the new trump administration.
  • Consumer spending remains healthy, supporting low credit losses.
  • Credit losses in commercial real estate, especially office space, remain a concern.
  • Consumer credit card losses were stable in Q4 2024.
  • Loan growth is slow but picking up gradually, with cautious expansion by banks and corporations
  • Capital rules are expected to be less restrictive, providing a tailwind for the sector.
  • Deposits are growing, though competition for them remains intense.
  • Banks are building reserves for potential future losses, reflecting a normal cycle amid slowing economic growth and loan growth.