Goldman Sachs posted its best quarterly profit since the third quarter of 2021, driven by strong dealmaking, debt sales, and trading activity.
The strong results helped the financial services giant’s shares jump around 2% in pre-market trading.
Goldman Sach’s Q4 results
The bank reported net revenues of $13.87 billion for the quarter, representing a 23% increase year-over-year and a 9% sequential growth from the previous quarter.
Net earnings surged to $4.11 billion, more than double the $2.01 billion reported in the fourth quarter of 2023.
Diluted earnings per share (EPS) reached $11.95, a substantial increase from $5.48 in the same quarter last year and $8.40 in the previous quarter.
The numbers were ahead of street estimates.
The LSEG estimate for EPS was $8.22, while revenue was expected at $12.39 billion.
Goldman Sachs’ segment revenues
Goldman’s asset and wealth management division posted an 8% revenue increase to $4.72 billion, while its global banking and markets division saw a 33% jump to $8.48 billion in Q4.
Trading revenue in both equity and fixed-income markets surged, with equity trading up 32% to $3.45 billion and fixed-income, currency, and commodities trading increasing by 35%.
Goldman’s investment banking fees saw a 24% increase, reaching $2.05 billion in the fourth quarter. Strong demand for debt underwriting, including leveraged finance and corporate bond sales, boosted results.
Equity and debt underwriting revenues surged 98% and 51%, respectively, thanks to secondary and initial public offerings, private placements, and leveraged finance activity. Advisory revenue declined by 4% for the quarter but saw an increase for the year.
Goldman Sachs CEO ‘very pleased with results’
CEO David Solomon expressed satisfaction with the bank’s results, noting the company had met or exceeded most of its strategic goals. Soloman said that the company was “very pleased with the strong results for the quarter and the year.”
He added:
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, and as a result, have both grown our revenues by nearly 50% and enhanced the durability of our franchise.
Earlier, He ahad highlighted optimism for 2025, expecting dealmaking activity in equities and mergers and acquisitions to surpass 10-year averages.
Goldman’s shares finished 2024 with a 48.4% gain, outperforming the broader market and surpassing rivals like JPMorgan Chase and Wells Fargo.
For the full year, the bank earned $40.54 per share, up from $22.87 in 2023, and its total revenue climbed 16% to $53.51 billion.
An earnings call to discuss the firm’s financial results, and outlook will be held today at 9:30 am (ET).
JPMorgan Chase is also set to report its results on Wednesday, alongside Wells Fargo and Citigroup, while Bank of America and Morgan Stanley are scheduled to report on Thursday.
The post Goldman Sach’s Q4 profit surges to $4.11B beating estimates, shares tick up 2% appeared first on Invezz
