David Solomon, Chairman & CEO Goldman Sachs, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024.
Adam Galici | CNBC
Goldman Sachs on Wednesday posted fourth-quarter results that topped estimates on stronger-than-expected trading revenue.
Here’s what the company reported:
- Earnings: $11.95 a share 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 revenues grew while expenses shrank. Revenue jumped 23% to $13.87 billion, helped by higher equities and fixed income trading revenue, and rising investment banking results.
Equities trading generated $3.45 billion in revenue, roughly $450 million more than the StreetAccount estimate. Fixed income trading made $2.74 billion in revenue, topping 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, topping estimates by $560 million.
“With an improving operating backdrop and growing CEO confidence, we are harnessing the power of One Goldman Sachs to continue to serve our clients with excellence and create further value for our shareholders,” CEO David Solomon said in the release.
Goldman Sachs is riding a wave of enthusiasm over a rebound in Wall Street deals.
The bank’s shares jumped nearly 50% last year, topping its big bank rivals, as the Federal Reserve’s easing cycle and the November election of Donald Trump boosted expectations for mergers and stock deals.
For Solomon, the setup couldn’t be more different than a year earlier, in the aftermath of a strategic pivot away from an ill-fated foray into consumer finance.
Back then, Solomon was under pressure to appease internal stakeholders including Goldman partners as losses tied to consumer finance mounted, and as Wall Street deals dried up because of rising 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 report on Thursday.
This story is developing. Please check back for updates.
