The country's largest banks reported fourth-quarter earnings on Friday, putting a cap on a volatile 2023. Financial titans JPMorgan Chase (JPM), Citigroup (C), Bank of America (BAC), and Wells Fargo (WFC) released mixed results with varying outperformances and declines.

JPMorgan fared best out the gate, growing annual net income to a record $49.6 billion — the highest ever for a US bank. Despite this achievement, JPMorgan's top and bottom-line results came in below fourth quarter estimates.

Yahoo Finance's Bradley Smith and Seana Smith break down the details.

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Editor's note: This article was written by Angel Smith.

Video Transcript

BRAD SMITH: Big bank results-- we're getting a mixed picture from bank stocks in premarket trading as the Big Four-- JPMorgan, Bank of America, Citigroup, and Wells Fargo kick off earnings season. With their fourth fiscal quarter results, this morning, JPMorgan moving higher. It raked in a record $49.6 billion in annual net income. The most ever in the history of the American banking industry.

The bank did take a profit hit as it paid off regulatory fees from its regional bank rescues. The other three bank stocks, under a bit of pressure as investors contend with how these firms have held up amid a higher rate environment. A big theme that we're honing in on today is what these results say about the consumer.

In that vein, let's get to some of our key takeaways here as we're taking a look at the premarket movements. I think two things really stuck out to us. One thing that really jumped out to me is just how the banks are talking about the economic environment right now, hearing from JPMorgan's CEO, Jamie Dimon, in his seat.

He said, it's important to note that the economy right now is being fueled by large amounts of government deficit spending, past stimulus, also an ongoing need for increased spending due to the green economy restructuring of global supply chains, higher military spending, rising health care costs. All these things considered, he says, this may lead inflation to be stickier and rates to be higher than markets expect. No doubt, markets are going to pay attention to that this morning as you're seeing some of the futures right now, lower across the board for the US major averages.

SEANA SMITH: Yes, certainly, Brad. And even to that point, despite all that uncertainty out there, Jamie Dimon once again reiterating the fact that he is, quote, "confident in their ability to continue to deliver very healthy returns." So we talk about what this quarter, what this past year has told us about the banks, and how they are set up into 2024.