US Banks: A Strong Start to Earnings Season

Date

January 17, 2025

Date

January 17, 2025

Date

January 17, 2025

By Paul MacDonald

The earnings season is off to a compelling start, with US banks once again leading the charge. At Harvest ETFs, we’ve seen the significance of this sector firsthand through our Harvest US Bank Leaders Income ETF (HUBL:TSX). Today, four of our key holdings—Wells Fargo, Citigroup, JPMorgan, and Goldman Sachs—reported strong earnings, collectively representing approximately 27% of the fund.

Highlights Driving Optimism

  1. Resilient Margins: Despite higher yields, net interest margins remain robust, particularly for JPMorgan, which announced upward revisions, further validating the strength of the US market recovery.
  2. Regulatory Sentiment Shift: Names like Wells Fargo are benefiting from improving regulatory sentiment and expanding margins.
  3. Trading Strength: Goldman Sachs reported solid trading results, demonstrating resilience across diverse revenue streams.
  4. Capital Returns: Citigroup unveiled an impressive $20 billion buyback program, reinforcing shareholder confidence.

Earnings breadth validated again with US Banks earnings

Source: Bloomberg, January 10, 2025.

Market Leadership Beyond Big Tech

The narrative around market earnings breadth is being validated once again. US banks are not just participating—they’re outperforming. Since June last year, the US banking sector has outpaced the tech sector by nearly 20%, showcasing its potential to drive diversified portfolio growth.

Beyond HUBL: A Broader Focus on US Banks

While US banks are a cornerstone of HUBL, their importance extends to our other offerings:

Why It’s Not Too Late to Join the Rally

Inflation data moderation or tariff reductions could further temper yields, enhancing the sector’s earnings potential. For investors seeking exposure to resilient growth and strong income potential, US banks remain a compelling opportunity.

Stay ahead of the curve by exploring the strength and resilience of US banks with HUBL and HDIF. Learn more about these ETFs and how they can complement your investment strategy at harvestportfolios.com

External Articles

https://www.businesspost.ie/markets/bank-earnings-goldman-sachs-and-jpmorgan-smash-records-as-us-bank-profits-soar

https://www.proactiveinvestors.co.uk/companies/news/1064374/citi-set-to-jump-on-earnings-beat-new-20b-share-buyback-1064374.html

https://www.msn.com/en-us/money/companies/wells-fargo-shares-climb-on-net-interest-income-beat-in-q4-2025-outlook/ar-AA1xf0uj?ocid=finance-verthp-feeds

Disclaimer

For Information Purposes Only. All comments, opinions and views expressed are of a general nature and should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies.

Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds, managed by Harvest Portfolios Group Inc. (the Fund(s)). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into Class A, Class B or Class U units of the Fund. If the Fund earns less than the amounts distributed, the difference is a return of capital. Tax, investment and all other decisions should be made with guidance from a qualified professional.

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