Goldman Sachs Q4 Profit Surges 58%, Tops Estimates

(RTTNews) - Goldman Sachs Group Inc. (GS) reported Tuesday that profit for the fourth quarter surged 58 percent from last year, reflecting 41 percent lower provisions for bad loans and 7 percent net revenue growth. Both earnings and quarterly revenues topped analysts' expectations.

In Tuesday pre-market trading, GS is currently trading on the NYSE at $384.00, up $6.25 or 1.65 percent.

For the fourth quarter, net earnings applicable to common shareholders surged to $1.87 billion or $5.48 per share from $1.19 billion or $3.32 per share in the prior-year quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $3.20 per share for the quarter. Analysts' estimates typically exclude special items.

Provision for credit losses for the quarter was $577 million, compared to $972 million last year, primarily reflecting provisions related to both the credit card portfolio and wholesale loans.

Operating expenses were $8.49 billion for the fourth quarter, 5 percent higher than last year, reflecting the FDIC special assessment fee of $529 million.

Total net revenues for the quarter grew 7 percent to $11.32 billion from $10.59 billion in the same quarter last year, reflecting higher net revenues in Asset & Wealth Management and Platform Solutions, partially offset by lower net revenues in Global Banking & Markets. Analysts expected revenue of $9.85 billion for the quarter.

Net revenues in Global Banking & Markets were $6.35 billion for the fourth quarter, down 3 percent from the previous year, primarily due to 12 percent lower revenues in Investment Banking fees and a 24 percent decline in Fixed Income, Currency and Commodities (FICC) net revenues.

Net revenues in Asset & Wealth Management were $4.39 billion for the fourth quarter, 23 percent higher than the prior year, reflecting significantly higher net revenues in Equity investments and Debt investments and higher Management and other fees, partially offset by lower net revenues in Private banking and lending.

Platform Solutions net revenues in grew 12 percent to $577 million from last year, reflecting significantly higher net revenues in Consumer platforms.

On Friday, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $2.75 per common share to be paid on March 28, 2024 to common shareholders of record on February 29, 2024.

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