Bank earnings to cap banner 2025, set the table for growth in 2026: 'Everything is moving up at the same time'

Core Viewpoint - The upcoming earnings reports from major U.S. banks are expected to show record revenues and profits for 2025, indicating a strong performance in the banking sector [1][2]. Group 1: Earnings Reports - JPMorgan Chase will report its results on Tuesday, followed by Bank of America, Citigroup, and Wells Fargo on Wednesday, and Goldman Sachs and Morgan Stanley on Thursday [1][2]. - All six major banks are anticipated to report annual profit increases compared to the previous year, with trading fees reaching record levels, except for Wells Fargo [2][3]. Group 2: Market Performance - The KBW Nasdaq Bank Index rose by 29% in 2025, outperforming the S&P 500, which increased by 17% [4]. - Analysts predict that 2026 will mark the third consecutive year of outperformance for the banking sector compared to the S&P 500, drawing parallels to previous strong performance periods in the late 1990s and early 2000s [5]. Group 3: Economic Outlook - The U.S. economy is expected to reaccelerate in 2026, with favorable regulatory conditions and anticipated lending growth, supported by lower interest rates [5]. - The momentum in M&A activity is expected to continue, with no signs of reversal in the economic factors driving this growth [6].