Goldman Sachs Posts Strong Q4 Results, Shares Jump 5%
Goldman Sachs reported stronger-than-expected trading revenue and profit Wednesday, with its shares rising more than 5% in morning trading.
The bank’s profit nearly doubled from a year earlier to $4.11 billion, or $11.95 a share, as revenue grew while expenses shrank. Revenue jumped 23% to $13.87 billion, driven by higher equities and fixed income trading revenue, and rising investment banking results.
Equities trading produced $3.45 billion in revenue, exceeding the Street estimate by $450 million, while fixed income trading generated $2.74 billion, topping the estimate by almost $300 million. Investment banking fees of $2.05 billion matched the estimate.
Goldman’s asset and wealth management division also saw revenue jump 8% to $4.72 billion, beating estimates by $560 million.
“We are harnessing the power of One Goldman Sachs to continue to serve our clients with excellence and create further value for our shareholders,” said CEO David Solomon.
The bank’s robust performance comes amid a rebound in Wall Street deals, with its shares jumping nearly 50% last year. JPMorgan Chase, Wells Fargo, and Citigroup are also reporting results Wednesday, while Bank of America and Morgan Stanley are set to report on Thursday.