Goldman Sachs: profit climbs as trading revenue surges
(CercleFinance.com) - Goldman Sachs surprised Wall Street when it announced higher-than-expected quarterly profit on Tuesday, as trading markets gains lifted revenue.
The Wall Street firm's net profit more than doubled to 4.5 billion dollars, or 12.08 dollars per share, in the fourth quarter, while revenue climbed 16% to 10.3 billion dollars.
The results handily outpaced the consensus, sending shares up almost 3% in pre-market trading on Tuesday.
Three of its four main business lines reported higher quarterly revenue than they did a year ago.
However, Goldman's trading core division performed particularly strongly, as revenues in equities jumped 40%, thanks to significantly higher revenues in intermediation, reflecting strength in both derivatives and cash products.
Most impressive of all is that the bank's revenue for all of 2020 were 22% higher than 2019, seemingly unaffected by the global pandemic.
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