Revenues rise for US banks as litigation costs taper off

New York

IT WOULD have been a good year for the biggest US banks if it were not for US$30 billion in legal costs.

Revenue at the six largest firms, which start reporting results this week, probably climbed to US$413.6 billion in 2014, second only to a record set in 2010, based on results from the first nine months of last year and analysts' estimates for the fourth quarter. That is providing hope that an increase in profit will follow once banks move past 2014's record legal expenses.

Litigation and investigations dominated a year that also saw a revival of commercial lending, a rebound in mergers and acquisitions and a US economy that probably expanded by 2.3 per cent.

Investors looked beyond the legal expenses as shares in all six banks rose in anticipation of interest rate increases that could boost earnings from le…