Goldman Sachs beats analysts' estimates
Investment bank Goldman Sachs reported its fourth quarter earnings on Wednesday, comfortably exceeding forecasts from analysts to earn $5.08 per share on revenue of $8.17bn.
Dow Jones I.A.
38,460.92
04:30 15/10/20
Goldman Sachs Group Inc.
$423.04
11:04 24/04/24
Experts had estimated that the Wall Street bank would report $4.82 per share on income of $7.742bn.
As was the case with competitor Morgan Stanley's earnings report on Tuesday, growth was spurred on by a boost in revenue from trading, in particular fixed-income.
After the Federal Reserve raised interest rates in its December meeting, investment banks in the US are already reaping the benefit.
"After a challenging first half, the firm performed well for the remainder of the year as the operating environment improved," chief executive officer Lloyd Blankfein said in a statement.
"We continued to manage our expenses carefully and we enter the new year with industry leading positions across our businesses, as well as strong capital and liquidity."
Investors have backed banking shares since Donald Trump's election victory and the rate rise towards the end of 2016, as hopes of looser financial regulations volleys round.
Goldman shares were trading 0.9% lower in pre-market trade despite the strong earnings report.