BUZZ-BofA, Morgan Stanley close out bumper quarter for US banking giants

Reuters
16 Jan

** Strong results from Morgan Stanley and Bank of America wrap up a stellar quarter for Wall Street's 'big-six' banks

** Morgan Stanley up 1.8% in morning trading after Q4 profit more than doubles on a wave of dealmaking and stock sales

** BofA's profit beats expectations as its traders benefit from a flurry of activity; Shares of the second-largest U.S. lender were last flat

** Wall Street CEOs voiced confidence on Wednesday that the incoming U.S. administration would be business-friendly and good for banks

** JPMorgan Chase's annual profit rose to a record, while Goldman Sachs earned its biggest quarterly profit in more than three years

** Meanwhile, Wells Fargo gave an upbeat forecast for interest income - a key driver of its profits - in 2025 and Citigroup swung to profit versus a loss in the year-ago quarter

** All six banks sailed past analyst views for Q4 profit

** Market environment has already been favorable for banks, with buoyant equity markets and anticipation that President-elect Donald Trump will usher in a deregulatory and lower-tax agenda

** Elsewhere on Wall Street, PNC Financial , M&T Bank

and U.S. Bancorp also posted higher Q4 profits

** S&P 500 Banks Index , which tracks large-cap lenders, last up 0.5% on Thursday; It had gained ~6.5% month-to-date through previous close

(Reporting by Manya Saini in Bengaluru)

((Manya.Saini@thomsonreuters.com))

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