Goldman Sachs Surges in Profits Amid Booming Dealmaking

Goldman Sachs' profits more than doubled in the fourth quarter, driven by increased fees from dealmaking and strong trading performance. The investment bank saw significant rises in its global banking divisions and equity trading revenues, fueled by market optimism and strategic focus on lucrative markets.

Goldman Sachs reported a dramatic profit increase in the fourth quarter, fueled by robust fee earnings from heightened dealmaking, debt sales, and trading operations. The profits soared to $4.11 billion, or $11.95 per diluted share, compared to $2.01 billion, or $5.48 per share, in the same period last year, the bank announced on Wednesday.

The banking industry's leaders anticipate a fruitful year of dealmaking as the U.S. Federal Reserve adjusts interest rates. President-elect Donald Trump's pro-business rhetoric has further spurred investor confidence. "We are pleased with our strong quarterly and yearly results," expressed CEO David Solomon. "Achieving or exceeding our strategic goals from five years ago is very encouraging."

Goldman Sachs saw its investment banking fees surge by 24% to $2.05 billion in the fourth quarter thanks to a strong showing in debt underwriting driven by leveraged finance and corporate bond sales. The overall resurgence in mergers and acquisitions, along with increased activity in equity and debt markets, bolstered Wall Street banks' second-half performance in 2024.

(With inputs from agencies.)