Goldman Sachs reports biggest quarterly profit in three years
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Investment bank beats Wall Street expectations as it reports earning $11.95 per share in fourth quarter. Goldman Sachs posted its biggest profit since the third quarter of 2021 to beat Wall Street expectations, driven by bankers who brought in more fees from dealmaking, debt sales and strength in trading.
The investment bank’s shares rose 2.6% before the bell on Wednesday as it earned $11.95 per share in the fourth quarter, compared with $8.22 expected by analysts, according to estimates compiled by the London Stock Exchange Group. Banking industry executives anticipate stronger dealmaking activity this year as the US Federal Reserve cuts interest rates and President-elect Donald Trump’s pro-business comments fuel optimism among investors.
“We are very pleased with our strong results for the quarter and the year,” CEO David Solomon said in a statement. “I’m encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago.”.
Goldman’s investment-banking fees rose 24% to $2.05bn in the fourth quarter, powered by debt underwriting that benefited from strong leveraged finance and corporate bond sales. An industry-wide recovery in mergers and acquisitions along with renewed activity in equity and debt markets lifted results in the second half of 2024 for Wall Street’s top banks.
