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For many Americans, 2020 has been a year to forget. For Goldman Sachs Group Inc., it was one of the record books.
Fueled by the rapid recovery of markets from the worst of the pandemic-induced recession, Goldman generated $ 44.56 billion in annual revenue, the most since 2009, dating back to the last time the bank successfully weathered a crisis. and its consequences. Trading revenues for 2020 hit a 10-year high.
The $ 4.51 billion fourth-quarter profit the Wall Street company reported on Tuesday, or $ 12.08 a share, was more than double Goldman’s profit compared to the same quarter a year earlier. Quarterly net profit and quarterly revenue of $ 11.74 billion were much better than the expectations of analysts polled by FactSet, who predicted earnings of $ 7.39 per share on revenue of $ 9. $ 99 billion.
For the US banking industry, 2020 has been a roller coaster year. Markets plunged and economic activity declined in the spring as the coronavirus spread across the country. With many businesses closed and many consumers out of work, banks have belted out for widespread defaults. A strong federal spending program has helped avert a worst-case economic scenario, and in earnings reports last week, bank executives signaled that the economy has held up better than expected.
JPMorgan Chase & Co. said on Friday that fourth-quarter profit climbed 42% to a record $ 12.14 billion after the bank released $ 2.9 billion from its previously put fund inventory. aside to cover bad loans. Tuesday, Bank of America Corp. said profit fell 22% but exceeded analysts’ expectations after releasing $ 828 million from its loan loss reserves.
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