** Wall Street's biggest banks are on pace to clock a second consecutive year of blockbuster double-digit gains

** S&P 500 Banks Index .SPXBK, which tracks large-cap U.S. lenders, up ~31.3% so far in 2025, following a near 33% jump in 2024; S&P 500 .SPX up ~17.3% YTD

** Stronger deal activity, an IPO comeback, easing rate expectations and stable loan demand have fueled gains across the sector

** JPMorgan Chase JPM.N, the country's largest lender and often seen as a barometer of the U.S. economy, has surged 35%.

** Analysts expect the upswing to roll into 2026

** "We see further momentum and outperformance in 2026 as multi-year structural tailwinds for capital markets and capital return further unfold," brokerage KBW wrote in an outlook note

** Morgan Stanley analysts say revenue growth should accelerate in 2026 on higher capital markets activity and loan growth, while regulatory rollbacks fuel investor enthusiasm

** "Regulatory reform is the biggest sea change for large-cap banks in 2026, after over a decade of tougher and tougher rules," the brokerage wrote in an outlook note titled, 'A New Era for Large Cap Banks'

** Banking sector kicks off 2026 earnings season in mid-January, with attention on investment banking activity and interest income trends

Bank	2025 performance	2024 performance
JPMorgan Chase JPM.N	+34.9%	+40.9%
Goldman Sachs GS.N	+54.5%	+48.4%
Morgan Stanley MS.N	+42.4%	+34.8%
Bank of America BAC.N	+25.8%	+30.5%
Wells Fargo WFC.N	+34.3%	+42.7%
Citigroup C.N	+66.5%	+36.8%

Note: 2025 performance through market close on December 30

(Reporting by Manya Saini in Bengaluru)

((Manya.Saini@thomsonreuters.com; X: manya__saini))