Goldman Sachs Chairman and CEO David Solomon speaks on CNBC’s Squawk Box during the World Economic Forum Annual Meeting on January 17, 2024 in Davos, Switzerland.
Adam Galich | CNBC
Goldman Sachs Fourth-quarter results reported on Wednesday topped expectations, with trading revenue stronger than expected.
Here’s what the company reports:
- income: $11.95 per share vs. $8.22 LSEG estimate
- income: US$13.87 billion, expected US$12.39 billion
The bank said profit doubled from a year earlier to $4.11 billion, or $11.95 a share, as revenue rose and expenses fell. Revenue rose 23% to $13.87 billion, helped by higher equity and fixed-income trading revenue and higher investment banking performance.
Stock trading generated $3.45 billion in revenue, about $450 million more than StreetAccount’s estimate. Fixed-income trading generated revenue of $2.74 billion, nearly $300 million higher than expected. Investment banking fees of $2.05 billion were largely in line with expectations.
Another source of strength for the bank was its asset and wealth management unit, where revenue rose 8% to $4.72 billion, $560 million above forecasts.
“As the operating environment improves and our CEO’s confidence grows, we are leveraging the power of One Goldman Sachs to continue to deliver exceptional service to our clients,” CEO David Solomon said in the release. and create more value for our shareholders.”
Goldman Sachs is riding a wave of enthusiasm as Wall Street trade rebounds.
The bank’s shares rose nearly 50% last year, outperforming its big bank rivals, as the Federal Reserve’s easing cycle and Donald Trump’s election in November raised expectations for mergers and stock trading.
For Solomon, things are very different now than they were a year ago after an ill-fated shift away from strategic focus. March into Enter consumer finance.
At the time, Salomon was under pressure to appease internal stakeholders, including Goldman Sachs partners, as losses related to consumer finance mounted and Wall Street trading dried up due to rising interest rates and heightened regulatory scrutiny.
JPMorgan Chase and Wells Fargo and Citigroupalthough Bank of America and Morgan Stanley are due to report on Thursday.
This story is developing. Please check back for updates.
