Goldman Sachs Hits Profit High on Dealmaking Surge

Goldman Sachs recorded its highest profit since late 2021, driven by increased fees from dealmaking, debt sales, and strong trading. Its shares rose 3%. The bank anticipates more deal activity as interest rates fall, and President-elect Donald Trump fosters pro-business optimism. Revenue grew across multiple divisions, resulting in a 48.4% share price surge for 2024.

Goldman Sachs has reported its most profitable quarter since the end of 2021, propelled by a surge in fees from dealmaking, debt sales, and robust trading performance, leading to a 3% increase in its stock before market open.

In its fourth-quarter financials, Goldman declared a profit boost to $4.11 billion, translating to $11.95 per diluted share, from $2.01 billion, or $5.48 per diluted share, recorded the previous year. The Wall Street titan remains optimistic about future dealmaking activities as the Federal Reserve's potential interest rate reductions and pro-business sentiment from President-elect Donald Trump instill confidence in investors.

CEO David Solomon expressed satisfaction with the quarter's strong outcomes, notably the 24% uptick in investment banking fees to $2.05 billion, primarily due to successful debt underwriting. The broader financial sector is poised for a resurgence as mergers and acquisitions recover and equity and debt markets see renewed vigor.

(With inputs from agencies.)