US earnings season is upon us and, as usual, the banking sector has made the first move. Figures posted by JPMorgan Chase (US:JPM), Morgan Stanley (US:MS), Wells Fargo (US:WFC), Citigroup (US:C) and Bank of America (US:BAC) all stoked share price gains last week, consolidating the gains made throughout 2024 and confirming the industry has turned a corner after an indifferent period. Share prices are now around a fifth higher than they were before Donald Trump’s re-election, pushed up by promises of deregulation such as looser capital requirements.
For investors that follow UK banks, however, Wall Street can be an alien place. American lenders make money in different ways to NatWest (NWG), Lloyds (LLOY), for example, and have distinct growth and profit drivers.