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01-19 00:24

$Morgan Stanley(MS)$  $Goldman Sachs(GS)$  $Bank of America(BAC)$  $JPMorgan Chase(JPM)$  $Citigroup(C)$  

As earnings season for major US banks kicks off in January 2026, investors are weighing risks and opportunities amid AI investments, restructuring strategies, and shifting market dynamics

The six major US banks present a distinct split between certainty, with Morgan Stanley (MS), Goldman Sachs (GS), and Bank of America (BAC) offering steady earnings, and transformation, with JPMorgan (JPM) and Citigroup (C) embracing restructuring efforts and the Apple Card, while Wells Fargo (WFC) scales AI for growth

Trump-era regulatory shifts, including tax reforms and the proposed 10% credit card interest rate cap, shape bank strategies, creating risks and opportunities based on consumer exposure。。。

As earnings season unfolds, the US banking sector presents a clear choice between the "certainty" of investment banking leaders and the "transformation" potential of retail giants, compelling investors to weigh predictable returns against the risk of radical policy shifts

Big Bank Earnings Recap: Trump Policy Risk! Is Financial Still a Buy?

@Tiger_comments：
The January 2026 earnings season has started on a rough note for U.S. banks. All major US banks have now reported their results. Although each bank has a different business focus, increasing short-term spending on future technologies, particularly AI, has become an industry-wide consensus. However, the market’s reaction has been notably pragmatic: tolerance for rising expenses is fading, and the test of ROI (return on investment) has officially begun. Management teams repeatedly emphasized AI, data centers, and automation as long-term necessities. But the market is no longer rewarding spending on trust alone. Big bank earnings brief $Bank of America(BAC)$ delivered both EPS and revenue beats, supported by strong equity trading and a ~10% YoY increase in net interest income. Still, the stock recorded its worst earnings-day reaction since 2020. $JPMorgan Chase(JPM)$ missed expectations, with softer debt underwriting activity weighing on results. $Wells Fargo(WFC)$ missed across EPS, revenue, and NII, burdened by $612 million in severance costs. $Citigroup(C)$ reported lower earnings due to Russia exit losses, though investment banking fees surged 35%. Despite very different business mixes, all four stocks sold off. The split screen: MS and GS offer a different playbook $Morgan Stanley(MS)$ delivered a clean “wealth management + investment banking recovery” story: Q4 net revenue $17.89B (above expectations), full-year revenue a record $70.6B; EPS $2.68 (well above $2.44 expected) Wealth management revenue $8.43B (+13%) with strong net new assets; Investment banking revenue +47% $Goldman Sachs(GS)$ showed core strength but with a noisy headline: Q4 net profit $4.62B (+12%), EPS $14.01 (+17%) Equities trading $4.31B, a Wall Street record; Investment banking revenue +25% But revenue optics were hit by one-off accounting impacts tied to the Apple card transition to JPM, dragging the platform solutions segment Trump policy risk: JPMorgan says "Everything' on Table to fight 10% card cap Trump’s proposal to cap credit card interest rates at 10% starting in 2026 immediately raised alarm. Combined with lingering uncertainty around Federal Reserve leadership, policy risk has become a second headwind on top of earnings scrutiny. Bank stocks have become a macro + policy + execution trade, not a simple earnings trade. How are you trading this earnings season? Which of the six major U.S. banks do you favor? With Citigroup and Wells Fargo both announcing layoffs alongside increased AI investment, do you believe these moves can translate into long-term profitability? Broadly, large banks now fall into two narratives: Buying higher-certainty names such as Morgan Stanley, Goldman Sachs, and Bank of America, or Positioning for transformation stories, including JPMorgan’s Apple Card exposure, and the restructuring paths at Citigroup and Wells Fargo. Which camp are you in — certainty or transformation? Leave your comments to win tiger coins~
Big Bank Earnings Recap: Trump Policy Risk! Is Financial Still a Buy?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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