Goldman Sachs Chairman and CEO David Solomon speaks on CNBC’s Squawk Box at the World Economic Forum Annual Meeting on January 17, 2024 in Davos, Switzerland.
Adam Galich | CNBC
Goldman Sachs The company is scheduled to report fourth-quarter earnings before the market opens on Wednesday.
Here’s what Wall Street expected:
- Earnings per share were $8.22, according to LSEG
- Revenue: $12.39 billion, according to LSEG
- Trading revenue: $2.45 billion in fixed income and $3 billion in equities, according to StreetAccount
- Investment banking revenue: $2.01 billion per StreetAccount
Goldman Sachs is riding a wave of enthusiasm as Wall Street trade rebounds.
The bank’s shares rose nearly 50% last year, outperforming its big bank rivals, as the Federal Reserve’s easing cycle and Donald Trump’s election in November raised expectations for mergers and stock trading.
Goldman Sachs’ fourth-quarter results will give investors a preview of what to expect this year, as investment banking and trading fees are expected to see double-digit percentage increases. The industry’s investment banking revenue rose 29% in the quarter, driven by growing advisory and equity capital markets activity, according to Dealogic.
Additionally, activity in the stock market late last year should boost results from the company’s asset and wealth management unit, which Chief Executive David Solomon has called the company’s growth engine.
For Salomon, the model is very different now than it was a year ago, after a shift in strategic focus away from the ill-fated consumer finance sector. At the time, Salomon was under pressure to appease internal stakeholders, including Goldman Sachs partners, as losses related to consumer finance mounted and Wall Street trading dried up due to rising interest rates and heightened regulatory scrutiny.
JPMorgan Chase and Wells Fargo and Citigroupalthough Bank of America and Morgan Stanley are due to report on Thursday.
This story is developing. Please check back for updates.
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