Goldman Sachs has posted its highest quarterly profit in the last three quarters of 2021. This was due to strong trading, dealmaking and debt sales.
Strong results have helped financial giants’ shares to jump 2% or more in pre-market trade.
Goldman Sachs’ Q4 Results
The bank’s net revenue for the third quarter was $13,87 billion, a growth of 23% year over year and a sequential increase of 9% from the prior quarter.
The fourth-quarter net earnings grew to $4.11 Billion, which is more than twice the $2.01 Billion reported for the same period in 2023.
Earnings per share (EPS), diluted, reached $11.95, an increase of over $5.48 from the same period last year.
Street estimates were not accurate.
The LSEG estimated EPS at $8.22 while revenues were expected to be $12.39 billion.
Goldman Sachs’ segment revenues
Goldman Sachs’ asset and wealth division reported an increase of 8% in revenue to $4.72billion, and its global banking division experienced a jump of 33% to $8.48billion.
Equity trading revenue grew by 32 percent to $3.45 Billion, while fixed income, currency and commodities trading increased 35%.
Goldman’s investment banking fee grew by 24%, to $2.05billion in the fourth-quarter. The results were boosted by a strong demand for debt financing, such as leveraged finance or corporate bond sales.
The equity and debt underwriting revenue surged by 98% and 51 %, respectively. This was due to the secondary and first public offerings, as well as private placements and leveraged financing activity. The Advisory Revenue declined by 4% in the third quarter, but increased for the entire year.
Goldman Sachs CEO: ‘Very pleased’ with the results
David Solomon, CEO of the Bank of America Corporation (BOC), expressed his satisfaction at the results achieved by the bank. He noted that the company has met or even exceeded many strategic goals. Soloman stated that his company is “very happy with the results of the quarter and year”.
Then he added:
It’s encouraging that, five years after we developed our growth strategy, we met or even exceeded most of the goals we had set. As a result we increased our revenue by almost 50%, while also increasing the longevity of our business.
He had earlier expressed optimism about 2025 and predicted that dealmaking in the equities market and mergers-and-acquisitions would surpass 10 year averages.
Goldman shares ended 2024 at 48.4%, beating rivals such as JPMorgan Chase & Wells Fargo.
The bank’s total revenues grew 16%, to $53.51 Billion, for the entire year. It earned an average of $40.54 per shares, up from 22.87 cents in 2023.
Today at 9:30 AM (ET), the company will hold a conference call in which they’ll discuss their financial performance and future outlook.
JPMorgan Chase, Wells Fargo, and Citigroup will also report their results on Wednesday. Bank of America, Morgan Stanley, and Morgan Stanley, on the other hand, are expected to do so on Thursday.
As new information becomes available, this post Goldman Sachs’ Q4 profits surge to $4.11B in the face of expectations and shares rise 2% could be updated.
