JPMorgan Chase & Co, the biggest US bank by assets, reported stronger than expected quarterly earnings and revenue, helped by a surge in investor activity related to the US presidential election.
The bank's net income rose 23.8% to $6.73 billion in the three months ended December 31, while earnings per share rose to $1.71 from $1.32.
Excluding items, the bank earned $1.58 per share, easily beating the average analyst estimate of $1.44 per share, according to Thomson Reuters I/B/E/S.
"We grew market share in virtually all of our businesses and showed expense discipline while continuing to invest for the future," the bank's chief executive Jamie Dimon said in a statement.
"The US economy may be building momentum," Mr Dimon said.
"Looking ahead there is opportunity for good, rational and thoughtful policy decisions to be implemented, which would spur growth, create jobs for Americans across the income spectrum and help communities," he added.
Donald Trump's shock victory on November 8 set off a wave of trading in stocks and bonds during what is normally a slow period for trading desks at big banks.
Bank of America, the second-largest US bank, kicked off the quarterly earnings period for big US lenders earlier today, announcing a 46.8% rise in profit.
The banks were also reporting their first results since the Federal Reserve raised its key interest rate target for the second time since 2006 on December 14.
Higher interest rates are usually good for banks, allowing them to charge higher rates on loans.
Revenue from fixed-income trading - JPMorgan's most volatile business - rose about 31% to $3.37 billion, while stock trading revenue increased 8.1% to $1.15 billion.
That helped boost total net revenue by 2.5% to $24.33 billion, beating analysts average estimate of $23.95 billion.
JPMorgan's shares have risen about 23% since the US election.
Bank stocks have been on the up on the expectation that profits will be boosted by Trump's plans to cut corporate taxes, ease regulatory restraints and boost infrastructure spending.
The Federal Reserve, which raised interest rates by 0.25 percentage points in December, is expected to raise them again three times this year.
JPMorgan said its fourth-quarter return on tangible common equity, a key performance measure, was 14%, up from 11% a year-earlier.
It said its total non-interest expenses fell 3%to $13.83 billion, primarily driven by lower legal expenses.
Wells Fargo, the largest US mortgage lender, also today reported a 6.4% fall in profit.
Citigroup, Goldman Sachs Group and Morgan Stanley all report earnings next week.
