Goldman Sachs' Record-breaking Profit Surge

Goldman Sachs reported a more than doubled profit in Q4, driven by increased fees from dealmaking and trading. The bank's global banking revenue surged, with strong performances in equity and debt markets. Shares rose by 3% amid leadership changes and strategic focus on private credit markets.

Goldman Sachs has announced a significant increase in profits for the fourth quarter, with figures more than doubling compared to the same period last year. This surge was primarily fueled by enhanced fees from both dealmaking and trading activities, leading to a 3% rise in shares before the market opened.

For the fourth quarter ending December 31, Goldman reported a profit of $4.11 billion, or $11.95 per diluted share, marking a substantial increase from the $2.01 billion, or $5.48 per share, earned a year earlier. This represents the highest quarterly profit since 2021, based on LSEG data.

Citing the optimistic economic policies of the new administration and ongoing interest rate cuts, Goldman anticipates continued strength in dealmaking for 2025. CEO David Solomon expressed satisfaction with meeting almost all strategic targets set five years ago, as total global investment banking revenue climbed 26% in 2024.

(With inputs from agencies.)