Goldman Surpasses Estimates As Stock Traders Score Record Haul

Goldman Sachs Group Inc. cruised past estimates as its equity traders delivered their best year on record. 

The firm’s fourth-quarter profits more than doubled to $4.1 billion, buoyed by strength in its investment bank, expansion of its asset management business and a surprise $472 million gain from a balance sheet bet. 

After Goldman ended 2024 as the best-performing stock among major US banks with a 48% advance, investors will be scouring earnings for signs it can sustain that momentum. The bank is positioning itself for a long-awaited resurgence in deals after ditching major parts of a consumer foray. 

“I’m encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago,” Chief Executive Officer David Solomon said in a statement.

Revenue in the last three months of the year was $13.87 billion, also beating estimates. Goldman shares now trade at almost 1.7 times their book value, a striking turnaround from just over a year ago when it had slid below 1.

The shares climbed 2.4% in early New York trading on Wednesday. Return on equity — a measure that tracks how profitably the bank invests shareholder equity — jumped to 14.6%, significantly ahead of estimates. 

The fixed-income trading business posted $2.74 billion in revenue, driven by gains in currencies, mortgages and credit products. The stock-trading unit logged $3.45 billion in what Goldman called a record. 

Investment-banking revenue of $2.05 billion compared with analysts’ average estimate of $2 billion. Merger advisory fees were $960 million. Its equity-capital business logged $499 million and debt-underwriting revenue was $595 million.

Goldman’s asset- and wealth-management business posted revenue of $4.72 billion, up 8% from a year earlier.