Goldman Sachs has reported its highest profits since 2021, beating Wall Street expectations driven by strong dealmaking and increased fees from debt sales and trading. The bank’s shares rose 2.6% ahead of the market open on Wednesday as it earned $11.95 per share in the fourth quarter, exceeding analysts’ estimates.
Banking industry executives predict stronger dealmaking activity this year due to lower interest rates and President-elect Donald Trump’s pro-business comments. CEO David Solomon expressed confidence in the bank’s strategy, saying “we have met or exceeded almost all of the targets we set” five years ago.
Goldman’s investment-banking fees surged 24% to $2.05bn in the fourth quarter, driven by strong debt underwriting and corporate bond sales. The bank’s total investment-banking revenue globally increased 26% to $86.8bn, with North America surging 33% from a year ago.
The bank’s asset and wealth management arm saw an 8% increase in revenue to $4.72bn, while its global banking and markets division rose 33%. Equity traders continued to ride the stock market rally, with revenue surging 32% to $3.45bn and posting a record net annual revenue.
A broader stock market rally, fueled by optimism over new economic policies, drove growth across the US stock market.
Source: https://www.theguardian.com/business/2025/jan/15/goldman-sachs-earnings-profit