Goldman Sachs Exceeds Wall Street Expectations with Record Profits

Goldman Sachs reported its highest profit since Q3 2021, exceeding Wall Street expectations. The success was driven by increased fees from dealmaking, debt sales, and strong trading performances. Anticipation of stronger dealmaking activity in the coming year further fuels optimism among investors.

Goldman Sachs has posted its strongest profit since the third quarter of 2021, surpassing Wall Street expectations. This financial triumph is largely attributed to the bank's proficient handling of dealmaking, debt sales, and strong trading performances. Shares rose by 3% pre-market as the investment bank earned $11.95 per share in the fourth quarter, beating the $8.22 anticipated by analysts according to LSEG estimates.

Bank executives expect a surge in dealmaking activity in the coming year, encouraged by interest rate cuts from the U.S. Federal Reserve and pro-business statements from President-elect Donald Trump. "We are very pleased with our results this quarter and year," said CEO David Solomon. "We have met or exceeded nearly every target set five years ago."

Goldman Sachs saw its investment banking fees increase by 24%, reaching $2.05 billion in Q4, thanks to strong leveraged finance and corporate bond sales. Global investment banking revenue rose 26% to $86.8 billion in 2024, with North America seeing a 33% increase. Goldman also made leadership adjustments, focusing on financing large deals while slimming down its consumer operations after incurring significant losses.

(With inputs from agencies.)