David Solomon, chairman and CEO of Goldman Sachs, speaks on CNBC’s Squawk Box at the World Economic Forum’s annual meeting in Davos, Switzerland, on January 17, 2024.
Adam Galici | CNBC
Goldman Sachs announced fourth-quarter earnings before the open on Wednesday.
Here’s what the company posted compared to what Wall Street analysts polled by LSEG were expecting:
- Earnings: $11.95 per share, versus $8.22 expected
- Revenue: $13.87 billion, versus $12.39 billion expected
Goldman Sachs is riding a wave of enthusiasm for the recovery in Wall Street.
The bank’s shares have jumped nearly 50% in the past year, outperforming its big banking rivals, as the Federal Reserve’s easing cycle and the election of Donald Trump in November raised expectations for mergers and equity deals.
Goldman’s fourth-quarter results will give investors a preview of what to expect this year, as investment banking and trading fees are expected to grow by double-digit percentages. Industrial investment banking revenue jumped 29% in the quarter, according to Dealogic figures, driven by rising advisory and equity capital markets activity.
Furthermore, a buoyant stock market late last year should boost results within the firm’s asset and wealth management division, whose CEO David Solomon called the company’s growth engine.
For Solomon, the line-up could not be more different than it was a year earlier, after a strategic turn from the ill-fated one raid in consumer finance. At the time, Solomon was under pressure to appease internal stakeholders, including Goldman’s partners, as consumer finance losses mounted and Wall Street business dried up due to rising rates and heightened regulatory scrutiny.
JPMorgan Chase also reports results on Wednesday, along with Wells Fargo and Citigroupwhile Bank of America and Morgan Stanley are due to report on Thursday.
This story is evolving. Check again for updates.
