On Wednesday, the largest banks in America reported significant profits for the full year. This increase in profits can be attributed to the current rise in dealmaking on Wall Street and a growing confidence in the economic policies expected from the upcoming Trump administration.

Jamie Dimon-led JP Morgan saw its net profits rise to a record $58.5 billion from $49.6 billion in 2023, while David Solomon’s Goldman Sachs reported profits of $14 billion for 2024, compared to $8.5 billion a year earlier.

Both banking titans were boosted by a series of interest rate cuts that made it cheaper for major corporations to borrow money, prompting more mergers and acquisitions in 2024.

JPMorgan’s investment banking revenue rose by 46% from 2023 to $2.6 billion; while Goldman Sachs pointed to a 24% jump in fees from the previous year to hit $7.7 billion that was driven in part by its debt underwriting activities.

Goldman also said that its fourth-quarter profits rose to $4.1 billion, compared with $2 billion year-on-year, while crosstown rivals JPMorgan posted $14 billion, compared with $9.3 billion for the same period in 2023.

“We are very pleased with our strong results for the quarter and the year,” Goldman Sachs CEO David Solomon said.

“The US economy has been resilient,” Dimon, CEO of America’s largest bank, said, citing low unemployment and healthy consumer spending.”

He added that Donald Trump’s election victory had left American companies feeling “encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business.”

That optimism has seen US stock markets rally since the election on Nov. 5 amid hope that Trump will slash red tape in order to boost growth.

Goldman shares were up by just over 1% Wednesday morning, hitting $571.53 just after the full-year financial results were released.

JP Morgan stock remained largely unchanged just after the opening bell, sitting at 247.47.

Two other banks also posted strong results. Wells Fargo said it had made $5.1 billion in the fourth quarter and $20 billion for the year. The bank pointed to rich clients pumping money into its upmarket savings products.

Citi, led by Jane Fraser, reported net profits of $2.9 billion in the fourth quarter of 2024, and $12.7 billion overall for the full year.