Goldman Sachs Posts Strong Q4 Earnings Amid Wall Street Rebound

NEW YORK — Goldman Sachs reported stronger-than-expected fourth-quarter earnings on Wednesday, driven by a surge in trading revenue and a rebound in Wall Street dealmaking. The bank’s profit nearly doubled to $4.11 billion, while revenue rose 23% to $13.87 billion, surpassing analyst estimates.

The results were fueled by a 29% jump in investment banking revenue, according to Dealogic, as advisory and equity capital markets activity surged. Fixed income and equities trading also contributed significantly to the bank’s performance, reflecting renewed optimism in financial markets.

“The setup couldn’t be more different than a year earlier,” said CEO David Solomon, referencing the bank’s strategic pivot away from consumer finance. Last year, Goldman faced mounting losses in its consumer division and a slowdown in Wall Street deals due to rising interest rates and regulatory scrutiny.

Goldman Sachs’ shares soared nearly 50% in 2023, outperforming its peers, as the Federal Reserve‘s easing cycle and the U.S. presidential election boosted expectations for mergers and acquisitions. The bank’s asset and wealth management division, which Solomon has called the firm’s “growth engine,” is also expected to benefit from the buoyant stock market.

Other major banks, including JPMorgan Chase and Wells Fargo, also reported earnings on Wednesday, while Bank of America and Morgan Stanley are set to release their results on Thursday. The strong performance across the sector signals a potential recovery in global financial markets after a challenging 2023.