U.S. Capital Markets Q4 2024 Results Remain Favorable; Optimism for 2025 Takes Center Stage

This commentary reviews the Q4 2024 results and outlook for U.S. capital markets banks.

Key highlights include:

-- Capital markets results at the U.S. Peer Group in 2024 were slightly better than we expected, reflecting continued strength in trading and a rebound in investment banking activity from what were historically low levels.

-- The U.S. Peer Group's full year net revenues, including both Investment Banking and Sales & Trading, were up 14% versus a strong 2023 and were 37% higher than the pre-pandemic 2019.

-- With the new U.S. administration signaling a more pro-growth agenda, businesses have become more optimistic about the economy, which portends a continued pickup in investment banking activity.

"Despite heightened geopolitical tensions and uncertainties around interest rates and inflation, the U.S. economy proved resilient in 2024. With the new U.S. administration signaling a more pro-growth agenda, businesses have become more optimistic about the economy, which portends a continued pickup in investment banking activity." said Michael McTamney, CFA, Senior Vice President - NA Financial Institutions Ratings