
Goldman Sachs on Wednesday put fourth-quarter results that topped estimates on stronger-than-expected trading revenue.
Here’s what the company reported:
- Earnings: $11.95 a allotment vs. $8.22 LSEG estimate
- Revenue: $13.87 billion vs. $12.39 billion expected
The bank said profit roughly doubled from a year earlier to $4.11 billion, or $11.95 a share, as take grew while expenses shrank. Revenue jumped 23% to $13.87 billion, helped by higher equities and resolved income trading revenue, and rising investment banking results.
Shares of the firm rose more than 5% in morning patronage.
Equities trading generated $3.45 billion in revenue, roughly $450 million more than the StreetAccount estimate. Put-up income trading had $2.74 billion in revenue, topping the estimate by almost $300 million. Investment banking costs of $2.05 billion essentially matched the estimate.
Another source of strength for the bank was its asset and wealth management conflict, which saw revenue jump 8% to $4.72 billion, topping estimates by $560 million.
“With an improving working backdrop and growing CEO confidence, we are harnessing the power of One Goldman Sachs to continue to serve our clients with excellence and frame further value for our shareholders,” CEO David Solomon said in the release.
Goldman Sachs has been riding a wave of keenness over a rebound in Wall Street deals.
The bank’s shares jumped nearly 50% last year, unequalled its big bank rivals, as the Federal Reserve’s easing cycle and the November election of Donald Trump boosted expectations for consolidations and stock deals.
For Solomon, the setup couldn’t be more different than a year earlier, in the aftermath of a strategic pintle away from an ill-fated foray into consumer finance.
Back then, Solomon was under pressure to appease internal stakeholders containing Goldman partners as losses tied to consumer finance mounted, and as Wall Street deals dried up because of impassion start rates and heightened regulatory scrutiny.
JPMorgan Chase is also reporting results Wednesday, along with Wells Fargo and Citigroup, while Bank of America and Morgan Stanley are due to communication on Thursday.