Major US banks reported banner earnings for the year as businesses and consumers continued to spend despite elevated interest rates. The country’s biggest banks benefitted from higher interest rates for the last two years when the Federal Reserve jacked up rates to combat the inflation that took root in the wake of the COVID-19 pandemic.[1] As a result, the banking sector was a standout stock market performer in 2024. The KBW Bank Index soared by 33%, its best year since 2013. It outpaced the S&P 500 by 9.4%, marking its most significant lead over the broader market since 2016. Despite concerns over high interest rates, investors remained confident in the sector’s strength.[2]
JPMorgan Chase Payments (CB) business combines cash management, payment solutions, and merchant services to corporate clients, financial institutions, and governments. In 2024, revenue reached a record $18.1 billion, a 1% increase from the previous year’s $17.8 billion. Although loans were down slightly, client deposits were up 9% YoY. Zooming out to divisional client coverage results for the Commercial & Investment Bank, Global Corporate Banking & Global Investment Banking client revenue grew 13%, primarily driven by investment banking fees.
Bank of America Global Transaction Services (GTS) is a leading treasury and cash management solutions provider. They serve clients across all segments and industries, from middle-market businesses to the world’s largest corporate and financial institutions. The group saw a slight decline (less than 1%) in full-year revenue, reaching $10.5 billion. However, average deposit balances increased 8% to $545.8 billion. Additionally, the bank reported significant growth in their CashPro App usage, with 2,119,000 sign-ins and $284 BN in CashPro App Payments in the 4th quarter.
Citi Treasury and Trade Solutions (TTS) provides integrated cash management and trade finance services to multinational corporations, financial institutions, and public sector organizations worldwide. In 2024, the group achieved full-year revenue of $14.5 billion, marking a 6% increase. Revenue growth was primarily driven by non-interest revenue from a more negligible impact from Argentina’s currency devaluation, an increase in cross-border transaction value, an increase in US dollar clearing volume, and an increase in commercial card spend volume.
PNC Corporate & Institutional Banking’s Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services, and access to online/mobile information management and reporting services. In 2024, the bank experienced an impressive 13.5%% revenue increase of $3.9 billion.
Wells Fargo Corporate and Investment Banking delivers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients globally. In their earnings release, the bank reported Commercial Banking Treasury Management and Payments segment full-year revenue of $5.7 billion in 2023, representing an 8% decrease compared to the previous year. Their Corporate and Investment Banking segment revenue was $2.7 billion, an 11% reduction.
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[1] JPMorgan posts record annual profits as major US banks thrive in the final quarter of 2024, AP News, January 15, 2025
[2] US Banks Report Record Earnings: Here’s What’s Powering the Surge, Vested Finance, January 17, 2025
