Goldman Sachs reports 45% rise in revenue to $3.80 billion in Q4

Goldman Sachs reports 2021 earnings per common share of $59.45 and fourth-quarter earnings per common share of $10.81.

American multinational investment bank and financial services company Goldman Sachs registered a 45% increase in investment banking revenue to $3.80 billion as its chief investors indexed in record fees from advisory on some of the largest mergers, initial public offerings and sales implicating special purpose acquisition companies.

Goldman Sachs reports 2021 earnings per common share of $59.45 and fourth-quarter earnings per common share of $10.81. The company’s shares were down by 8.05 per cent at 350.32 USD today.

The global markets business, which now houses the trading business and accounts for roughly a third of overall revenue, reported a revenue of nearly $4 billion, down 7%. Net earnings suitable to common shareholders fell to $3.81 billion in the quarter ended Dec. 31, from $4.36 billion the same period a year earlier. Earnings per share fell to $10.81 from $12.08 a year earlier.

Corresponded to a strong year-ago quarter when trading volumes zoomed, the bank conveyed equity underwriting revenue fell 8% in the quarter due to lower income from secondary stock offerings.

Analysts on average had expected a profit of $11.76 per share. While profits of JPMorgan, the country’s largest lender, were hurt by a slowdown in its trading arm, a stellar performance at its investment banking softened the impact. Meanwhile on Friday, JPMorgan Chase & Co JPM.N and Citigroup Inc C.N both beat analyst profit estimates.

Goldman’s IBD is unique in that it not only provides these conventional investment banking services but also makes selective principal investments in companies. Goldman’s IBD has its investment funds, which are separate from GS Capital Partners / PIA (Goldman’s internal corporate private equity group).

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