Goldman Sachs Q4 profits jump 58% to $1.9 bn on strong equity trading

Goldman Sachs Q4 profits jump 58% to $1.9 bn on strong equity trading

Goldman Sachs CEO David Solomon described 2023 as a 'year of execution' for the investment bank
Goldman Sachs CEO David Solomon described 2023 as a 'year of execution' for the investment bank. Photo: WIN MCNAMEE / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

Goldman Sachs reported a jump in fourth-quarter profits Tuesday as a surge in revenues for equity trading offset weaknesses in other areas, including merger advising revenues.

The New York investment bank reported profits of $1.9 billion, up 58 percent from the year-ago period. Revenues rose seven percent to $11.3 billion.

Goldman Sachs' revenues tied to equity trading surged 26 percent in the quarter, while the banks own holdings in public equities also enjoyed a hefty increase during a heady period for US stocks.

Those two line-items made up for drops in merger advisory revenues, revenues tied to fixed income, currency and commodity trading and the drag from a one-time charge to replenish the Federal Deposit Insurance Corporation's emergency fund after last year's emergency actions in response to a crisis hitting midsized lenders.

Read also

US banks report mixed results, see consumers as still fairly healthy

In Goldman's case, this fee came to $529 million.

Results were also dented by $577 million in provisions for credit losses in part from problem credit card loans.

Goldman Sachs Chief Executive David Solomon described the bank's strategy as clarified after a difficult stretch in 2023. Goldman partners and former CEO Lloyd Blankfein were quoted in prominent news articles criticizing Solomon's leadership style and handling of Goldman's foray into consumer banking, which has now been largely divested.

Solomon described 2023 as a "year of execution," according to a press release.

"With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024," Solomon said.

Shares of Goldman rose 1.4 percent in pre-market trading.

Source: AFP

AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.