Goldman Sachs Group Inc. reported a sharply higher profit for the fourth quarter, which benefited from a turbulent year in which the Wall Street business profited from the rapid recovery of the markets from the worst recession caused by pandemics.
Goldman on Tuesday reported a quarterly profit of $ 4.51 billion, or $ 12.08 per share, more than double the level of the same quarter a year ago. Revenue of $ 11.74 billion was 18% higher than the fourth quarter of 2019. Both measures were much better than the expectations of analysts surveyed by FactSet, which generated a profit of $ 7.39 per share on the revenue of $ 9.99 billion.
Goldman’s annual revenue of $ 44.56 billion was the highest since 2009, while annual trading revenue peaked at ten years.
For the US banking industry, 2020 was a roller coaster year. Markets declined and economic activity declined in the spring as the coronavirus spread across the country. With many businesses closed and many consumers out of work, banks have strapped themselves in due to widespread defaults. A robust federal spending program helped prevent the worst-case economic scenario, and bank executives indicated in earnings reports last week that the economy was doing better than expected.
JPMorgan Chase & Co. said on Friday its fourth-quarter profit rose 42% to a record $ 12.14 billion after the bank released $ 2.9 billion from its stockpile of funds previously set aside to cover loans. Bank of America Corp. said Tuesday that profits fell 22%, but that it was better than analysts’ expectations after releasing $ 828 million from its loan loss reserves.