Goldman Sachs Surges with Record Profits and Dealmaking Boom

Goldman Sachs reported its strongest profit since 2021, driven by robust dealmaking and trading activities, with shares rising by 3%. The bank's investment banking fees grew by 24%, bolstered by debt underwriting, mergers, and acquisitions. Looking ahead, Goldman anticipates continued growth in equity and debt markets.

Goldman Sachs has posted its highest profit since 2021, with the firm benefiting from increased fees in dealmaking and trading. Its shares rose by 3% before the bell, indicating positive market response. The bank reported a profit of $4.11 billion, or $11.95 per diluted share, for the fourth quarter ending December 31, surpassing last year's $2.01 billion, or $5.48 per diluted share.

With anticipation of stronger dealmaking this year, fueled by potential interest rate cuts from the U.S. Federal Reserve and pro-business sentiments from President-elect Donald Trump, the atmosphere among investors is optimistic. CEO David Solomon expressed satisfaction over meeting or exceeding targets set five years prior.

Goldman's investment banking fees rose 24% to $2.05 billion, supported by aggressive debt underwriting. An industry-wide resurgence in mergers and acquisitions, coupled with heightened activity in equity and debt markets, pushed Wall Street banks' performances higher in late 2024.

(With inputs from agencies.)