American bank profit season begins with cautious expectations amid the escalation of fees

The profit season in the United States began on Friday with the major banks’ announcement of their results for the first quarter of 2025, amid expectations of strong performance driven by the steadfastness of the American economy. Despite these positive indicators, analysts expect cautious future directives due to the escalation of the uncertainty related to customs duties, according to the European “Euronews” report.

The start of the first quarter profit season

The markets are witnessing the start of the profit season with a leading American banks such as “GB Morgan Chase” and “Wales Fargo” for its results, provided that this week, “Bank of America”, “City Group” and “Morgan Stanley” will follow this week.
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The importance of the results of the major banks

The results of these financial institutions come in the aftermath of a turbulent week in “Wall Street”, and it is expected to provide important economic visions on the impact of the customs duties imposed by US President Donald Trump on the morale of companies and future directions.

Expectations of analysts to perform banks

Analysts expect that American banks will record a strong performance in the first quarter, supported by an economic environment that is still flexible. But the focus will turn more into future directives, especially in light of the escalation of anxiety from the economic consequences of commercial restrictions, with weightings to reduce growth expectations, which is a pivotal point for investors when assessing the impact of trade war in the long run.
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Performance of the banking sector before definitions

Before the escalation of commercial tensions, the American banking sector was among the strongest performance, supported by constant growth in lending, improving liquidity conditions, high integration and acquisition activity. By February 19, the shares of “GB Morgan” and “Wales Vargo” had increased by 13%, but these gains decreased later, as the shares of the two banks fell by more than 20% as a result of the escalation in the trade war after Trump’s decisions on customs duties.

Strong profits results despite tensions

In the midst of this atmosphere, many major financial companies announced positive quarterly profits on Friday, which provided some support to investors after a turbulent week in the market. GB Morgan Chase, the largest bank in the United States in terms of lending, said that its net income in the first quarter rose to 14.6 billion dollars (12.8 billion euros), registering an annual increase by 9%, exceeding the market expectations.

Despite these strong results, the bank’s CEO, Jimmy Damon, warned of the continuation of the uncertainty due to the Trump -led trade war, along with other geopolitical tensions that affect the global economic scene.