Big banks see positive results amid Trump tariff turmoil, with profits and revenues rising

From Yahoo Finance: 2025-04-16 04:00:00

Big banks share positive results amid Trump’s tariff turmoil. Profits and revenue rose in Q1, driven by trading operations benefiting from market volatility. Net profits for JPMorgan Chase, Bank of America, Citigroup, Morgan Stanley, and Goldman Sachs totaled $35 billion, up 13% from last year. Trading revenue alone increased 17%.

Despite the uncertainty, consumer spending remains steady, defaults manageable, and businesses unaffected. Banks didn’t update earnings outlooks for the rest of the year. Post-April 2 tariff announcement, stocks and bonds plunged, signaling new economic uncertainty. Analysts express surprise at banks’ strength and optimism amid ongoing challenges.

While some CEOs warn of a recession, others remain upbeat. Citigroup CEO Jane Fraser sees the U.S. remaining the leading economy once trade imbalances are resolved. Bank of America CEO Brian Moynihan is confident no recession will happen in 2025. Banks prepare for uncertain times, adding provisions for future loan losses.

Some banks see a rise in investment banking income, defying slowdown predictions. Executives acknowledge deal uncertainties but describe pullbacks as temporary. Despite challenges, optimism remains, with banks preparing for potential economic changes. Analysts warn of continued choppy waters ahead in the financial sector.

Read more: Big banks maintain ‘the sky is not falling’ amid Trump tariff turmoil. So far.