Jan 16, 2024: Goldman Sachs announced a 51% surge in fourth-quarter profit, reaching $2.01 billion or $5.48 per share, compared to $1.33 billion or $3.32 per share a year ago. The strong performance was attributed to the success of its equity traders who capitalized on the market rebound. CEO David Solomon highlighted the bank’s execution in 2023 and emphasized a clear and simplified strategy for a stronger platform in 2024. The equity trading revenue witnessed a notable 26% increase, contributing to the positive results. Additionally, the asset and wealth management business reported a 23% rise to $4.39 billion, supported by gains from equity and debt investments. However, investment banking fees experienced a 12% decline due to a decrease in mergers and acquisitions activity, offsetting gains from debt and stock sales.
The fixed income, currencies, and commodities trading revenue fell 24%, primarily influenced by weakness in interest rate products and currencies. Goldman’s headcount at the end of December was 45,300, reflecting a 1% decrease from the third quarter and nearly 7% lower than the previous year. The bank recognized a $529 million expense tied to a special assessment fee for a government deposit insurance fund, part of a broader effort to replenish the fund after the collapse of two regional banks in the previous year.