David Solomon, Chairman and CEO of Goldman Sachs, speaks on CNBC's Squawk Box at the World Economic Forum's annual meeting in Davos, Switzerland, on January 17, 2024.
Adam Galese | CNBC
Goldman Sachs On Wednesday it posted fourth-quarter results that beat estimates on stronger-than-expected trading revenue.
Here is what the company said:
- Earnings: $11.95 per share vs. $8.22 LSEG estimate
- Revenues: $13.87 billion versus $12.39 billion expected
The bank said profits nearly doubled from the previous year to $4.11 billion, or $11.95 per share, as revenues grew while expenses shrank. Revenues jumped 23% to $13.87 billion, supported by higher equity and fixed income trading revenues, and higher investment banking results.
Goldman Sachs is riding a wave of enthusiasm over a rebound in Wall Street deals.
The bank's shares jumped nearly 50% last year, outperforming its big-bank rivals, as the Federal Reserve's easing cycle and the election of Donald Trump in November raised expectations about mergers and stock deals.
Goldman's fourth-quarter results will give investors a glimpse of what to expect this year, as investment banking and trading fees are expected to rise by double-digit percentages. Investment banking revenues for the industry jumped 29% in the quarter, according to Dealogic figures, helped by a rise in advisory and capital markets activity.
Moreover, the buoyant stock market late last year should boost results within the company's asset and wealth management division, which the CEO leads. David Solomon He has been called the growth engine of the company.
For Solomon, the situation could not be more different than it was a year ago, following the strategic shift away from the ill-fated conflict. foray In consumer finance. At the time, Solomon was under pressure to appease internal stakeholders, including Goldman partners, as losses linked to consumer finance mounted, and as Wall Street deals dried up due to rising interest rates and increased regulatory scrutiny.
JPMorgan Chase will also report its results on Wednesday, along with Wells Fargo and… Citigroupwhile Bank of America Morgan Stanley is scheduled to report on Thursday.
This story is evolving. Please check back for updates.
