[ad_1]
David Solomon, Managing Director of Goldman Sachs & Co., speaks during an interview with Bloomberg Television at the Milken Institute Global Conference in Beverly Hills, California, United States, Monday, April 29, 2019.
Patrick T. Fallon | Bloomberg | Getty Images
Goldman Sachs beat analysts’ expectations for fourth-quarter earnings and income on Tuesday on strong performance from the company’s stock traders and investment bankers.
The bank posted earnings of $ 12.08 per share, crushing the estimate of $ 7.47 per share from analysts polled by Refinitiv. Revenues of $ 11.74 billion exceeded the estimate by about $ 1.75 billion.
Expectations were high for Goldman CEO David Solomon. JPMorgan Chase last week released record fourth quarter trading and advisory results that helped the bank beat earnings estimates.
Of the six largest US banks, Goldman derives the largest share of its revenue from Wall Street activities, including trading and investment banking. In recent years this has been to the detriment of the business as retail banking has driven the industry’s record profits.
Now, for the last quarter of a year marked by the coronavirus pandemic, Goldman’s model could prove to be an advantage. Companies with large consumer credit operations have been forced to set aside tens of billions of dollars in provisions for bulk loans.
But the wide opening of the markets, thanks to unprecedented actions by the Federal Reserve at the start of the year, should help usher in the best year for trading on Wall Street since the financial crisis. Meanwhile, investment bankers are benefiting from growing demand for IPOs and a record wave of debt issuances.
Goldman stock rose 11% in 2020, beating the 4.3% decline in the KBW Bank index.
Here are the numbers:
Earnings: $ 12.08 per share, compared to $ 7.47 per share expected, according to Refinitiv.
Revenue: $ 11.74 billion, compared to an estimated $ 9.9 billion.
This story is developing. Please come back for updates.
[ad_2]
Source link