- Goldman Sachs posted better-than-expected revenue in the fourth quarter.
- The top-line beat was driven by strong equities trading, which more than offsets its weak bond trading.
- Its bottom line had monster growth from a year, when the bank took a massive write-down due to the enactment of the new tax code.
- Watch Goldman Sachs trade live.
Goldman Sachs was rallying early Wednesday, up 2.61% to $US184.60 a share, after posting strong equities-trading revenue in the fourth quarter.
The bank took in $US8.1 billion in revenue, down 1% from last year, while beating Wall Street consensus of $US7.5 billion. The firm’s equities-trading business grew 17% to $US1.6 billion, more than offsetting its weak fixed-income, currencies and commodities business (FICC), which saw revenue fall 18% to $US822 million.
Goldman said its net earnings attributable to common shareholders reached $US2.32 billion, or $US6.04 a share, compared with a loss of $US2.14 billion, or $US5.51 a share, a year earlier, when it took a massive write-down because of the enactment of the new tax code.
“We are confident that we are well positioned to support an even larger universe of clients, continue to diversify our revenue mix and deliver strong returns for our shareholders in the years ahead.”
Goldman Sachs was down 28% in the past year.
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