David Solomon, Chairman and CEO of Goldman Sachs, speaking on CNBC’s Squawk Box during the World Economic Forum’s annual meeting in Davos, Switzerland, January 17, 2024.
Adam Galicia | CNBC
Goldman Sachs Fourth-quarter results on Wednesday beat estimates, with trading revenue higher than expected.
Here’s what the company reported:
- Profit: $11.95 per share versus $8.22 estimated by LSEG
- Revenue: $13.87 billion versus $12.39 billion expected
The bank said its profit roughly doubled from a year earlier to $4.11 billion, or $11.95 per share, as revenue rose while expenses fell. Revenue jumped 23% to $13.87 billion, helped by higher equity and fixed-income trading revenue and higher investment banking results.
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, beating the estimate by almost $300 million. Investment banking fees of $2.05 billion essentially matched the estimate.
Another source of strength for the bank was its asset and wealth management division, which saw revenue jump 8% to $4.72 billion, beating estimates of $560 million.
“With an improving operating environment and growing CEO confidence, we are harnessing the power of One Goldman Sachs to continue to serve our clients with excellence and create greater value for our shareholders,” CEO David Solomon said in the release.
Goldman Sachs is riding a wave of enthusiasm over the rebound in transactions on Wall Street.
The bank’s shares surged nearly 50% last year, outpacing those of its big rivals, as the Federal Reserve’s easing cycle and the election of Donald Trump in November boosted expectations in matters of mergers and stock market transactions.
For Solomon, the setup couldn’t be more different than a year earlier, following a strategic shift away from an ill-fated foray into consumer credit.
At the time, Solomon was under pressure to appease internal stakeholders, including Goldman partners, as consumer credit losses mounted and Wall Street trading dried up due to rising rates and increased regulatory oversight.
JPMorgan Chase will also report earnings on Wednesday, alongside Wells Fargo and Citi Groupwhile Bank of America and Morgan Stanley are due to report on Thursday.
This story is developing. Please check again for updates.
