NEW YORK: JPMorgan Chase on Wednesday posted record annual profit as its dealmakers and traders reaped a windfall from rebounding markets in the fourth quarter.

The bank also forecast net interest income, or the difference between what it earns on loans and pays out on deposits, for 2025 above analysts’ expectations, despite issuing repeated warnings that it may not sustain the level of growth.

JPMorgan’s strong results bode well for the banking sector, which is seeing a revival in deal-making and fund-raising activities as the US Federal Reserve cuts interest rates to bolster the economy.

Goldman Sachs also posted a rise in fourth-quarter profit, benefiting from robust performance in its investment banking and trading units.

“The US economy has been resilient,” CEO Jamie Dimon said, citing low unemployment and healthy consumer spending.

“Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business,” Dimon said. Still, he cited risks: government spending, inflation, and geopolitical conditions.

JPMorgan’s Wall Street operations were lifted by a 49% jump in investment banking fees and 21% higher trading revenue in the fourth quarter, surpassing executives’ forecast in December.

Stronger trading in credit, currencies and emerging markets helped the fixed-income unit, while resurgent activity in derivatives trading and cash market helped its equities business.