JPMorgan and Bank of America beat earnings estimates for the end of the year thanks to the post-election stock market rally that helped boost trading income.
- Bank of America 4Q earnings topped expectations as profits rose 43%. Cuts in expenses helped the top line though as total revenues fell short of expectations.
- JP Morgan profit rose 24%. CEO Jamie Dimon highlighted the economy's "building momentum"
Wells Fargo was the morning's outlier. It missed estimates as customers were scared away following news the bank's employees had fraudulently opened accounts for customers to boost sales bonuses.
Looking ahead: Rising interest rates will be good for bank income and investors, who have boosted bank stocks 17% since the election and are also counting on bank-friendly changes to regulation.