Goldman Sachs CEO David Solomon.
Brendan McDermid/Reuters
Goldman Sachs posted a strong fourth-quarter earnings report Tuesday.
Its profits for the three months ending December 31 jumped 51% to over $2 billion.
Revenue for the bank’s stock-trading business exceeded Wall Street’s expectations.
Goldman Sachs posted a better-than-expected fourth-quarter earnings report Tuesday, bringing a sometimes turbulent year for the bank and its CEO David Solomon to a close.
Goldman’s profits for the three months ending December 31 jumped 51% year-over-year to just over $2 billion, or $5.48 per share – way clear of the $3.51 per share figure analysts polled by Refinitiv had been expecting.
The strong performance of the bank’s equity-trading business helped it log those forecast-beating results. Revenue from the division rose 26% to $2.6 billion, more than tripling the growth that had been projected by analysts, reflecting a quarter where the stock market soared thanks to resilient growth and investors’ expectation that the Federal Reserve will soon start slashing interest rates.
Its total revenue for the quarter came in at $11.3 billion, slightly higher than Wall Street’s prediction of $10.8 billion.
Goldman had previously positioned 2023 as a transitional year where it would pivot away from its consumer banking business, which had racked up billion-dollar losses.
“This was a year of execution for Goldman Sachs,” Solomon said. “With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024.”
Revenue for its asset and wealth management department climbed 23% to $4.4 billion, but its investment banking division brought in just $1.7 billion, which represented a 12% drop.
Shortly after the opening bell, shares had fallen 0.5% to trade at just under $376 as of 9:45 a.m. Eastern Time.