Banks are posting blow-out earnings thanks to the epic market rally that closed out 2019.
J.P. Morgan had the best year EVER for a US bank.
Trading revenues hit $4.95 billion, marking the best fourth-quarter performance by the firm’s trading desk in over a decade.
Citigroup also closed 2019 with a stellar Q4 earnings report. Profits were up 21% from 2018.
- Its fixed-income trading unit made $2.9 billion in Q4, crushing estimates by over 133%.
How Does It Affect My Wallet?
The big question is, do these bank gains mean the banks are doing a good job at running their business? Or does it mean consumers are doing a really bad job at managing their money?
…chances are it’s both.
The bank stock rally helped fuel a lot of stock market gains in 2019. These companies are huge, so they constitute a big segment of the S&P 500.
Even if you don’t hold any bank stocks, these stocks probably contributed to your portfolio’s gains last year.
Don’t want to miss our financial news you can finally use? Subscribe to our newsletter – it’s free!