Goldman Sachs: EPS and revenues exceed expectations

(CercleFinance.com) - Goldman Sachs has reported better-than-expected quarterly earnings on Tuesday, thanks to buoyant asset management and wealth management activities, which more than offset weakness in its investment banking and capital markets businesses.


The New York bank posted Q4 net income of $1.87bn, or $5.58 per share, compared with $1.18bn - or $3.32 per share - for the same period last year.

By way of comparison, analysts were looking for lower EPS of $3.20.

The asset management and wealth management arm's net revenues rose 23% to $4.39bn thanks to investment gains, compared with investment losses in the Q4 2022.

By contrast, revenues from investment banking - which includes capital markets activities - fell by 3% to $6.35bn, penalized by limited M&A activity and lower interest rates.

With the rebound in world stock markets at the end of the year, net revenues from equity markets climbed by 26% to $2.61bn.

In all, Goldman Sachs reported net income of $11.32bn for the quarter, up 7% y-o-y, above the consensus of $9.85bn.

Following these announcements, the stock was up 1.4% in pre-market trading on Tuesday morning on Wall Street.


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