Goldman Sachs on Wednesday reported fourth-quarter results that beat estimates on higher-than-expected trading revenue.
Here’s what the company reported:
- Earnings: $11.95 per share vs LSEG’s $8.22 estimate
- Income: $13.87 billion versus expectations of $12.39 billion
The bank said profit roughly doubled from a year earlier to $4.11 billion, or $11.95 a share, as revenue rose while costs fell. Revenue jumped 23% to $13.87 billion, helped by higher income from trading stocks and securities and growing investment banking results.
The company’s shares rose more than 5% in morning trading.
Equity trading generated $3.45 billion in revenue, roughly $450 million more than StreetAccount’s estimate. Fixed income trading posted revenue of $2.74 billion, beating estimates by nearly $300 million. Investment banking fees of $2.05 billion were broadly in line with estimates.
Another source of strength for the bank was its wealth and asset management division, which saw revenue jump 8% to $4.72 billion, beating estimates by $560 million.
“With an improving operational background and growing CEO confidence, we are leveraging the strength of One Goldman Sachs to continue to serve our clients with excellence and create additional value for our shareholders,” CEO David Solomon said in a statement.
Goldman Sachs was riding a wave of enthusiasm for the recovery in Wall Street business.
The bank’s shares have jumped nearly 50% in the past year, outperforming its big banking rivals, following a cycle of Federal Reserve easing and the November election Donald Trump raised expectations of mergers and acquisitions.
For Solomon, the line-up could not be more different than it was a year earlier, after a strategic turn from the ill-fated one raid in consumer finance.
At the time, Solomon was under pressure to appease internal stakeholders, including Goldman’s partners, as consumer finance losses mounted and Wall Street business dried up due to rising rates and heightened regulatory scrutiny.
JPMorgan Chase also reports results on Wednesday, along with Wells Fargo and Citigroupwhile Bank of America and Morgan Stanley are due to report on Thursday.