Goldman Sachs says its net income jumped over 100% in fiscal Q4

Written by: Wajeeh Khan
January 19, 2021
  • Goldman Sachs says its net income jumped over 100% in fiscal Q4.
  • The investment bank tops Wall Street estimates in the fourth quarter.
  • Goldman Sachs gained a little under 15% in the stock market last year.

The Goldman Sachs Group Inc. (NYSE: GS) reported its financial results for the fiscal fourth quarter on Tuesday that topped analysts’ estimates for earnings and revenue. The investment bank said that its net income in Q4 jumped over 100%.

In related news from the United States, Bank of America Corp. also published its earnings report for the fiscal fourth quarter on Tuesday.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Goldman Sachs shares are currently more than 2.5% down on the intraday chart. Including the price action, the stock is now exchanging hands at £218.20 per share after recovering from a low of £99.19 per share in March 2020 when the impact of COVID-19 was at its peak.

Goldman Sachs’ Q4 financial results versus analysts’ estimates

Goldman Sachs reported £3.31 billion of net income in the recent quarter that translates to £8.88 per share. In the same quarter last year, its net income was capped at a much lower £1.26 billion or £3.45 per share.

In terms of revenue, the American multinational recorded £8.63 billion of revenue that represents a 17.9% year over year growth. According to FactSet, experts had forecast the company to register a lower £7.34 billion of revenue. Their estimate for per-share earnings in the fourth quarter stood at £5.47.

Earlier this week, Bloomberg said that Goldman Sachs was considering expanding its footprint in cryptocurrencies with a sizable investment in digital assets.

At £1.04 billion, net interest income posted a 32.4% annualised growth in Q4 versus a lower £840 million expected. Revenue from investment banking, as per Goldman Sachs jumped 34% in the recent quarter while it increased 53% in market making.

Tip: looking for an app to invest wisely? Trade safely by signing-up with our preferred choice, eToro: visit & create account

Other prominent figures in Goldman Sachs’ earnings report

Within investment banking, the New York-based bank saw a better than expected 195% annualised growth in equity underwriting revenue. Despite a 68% increase in debt underwriting, it still remained weaker than what the analysts had anticipated.

FICC (fixed income, currencies, and commodities) revenue printed at £1.38 billion or 6% higher than last year versus an even higher £1.51 billion expected. Equities revenue jumped 40% in the fourth quarter to £1.76 billion that beat FactSet Consensus of £1.39 billion.

Goldman Sachs performed fairly upbeat in the stock market last year with an annual gain of a little under 15%. At the time of writing, the American multinational investment bank is valued at £75.44 billion and has a price to earnings ratio of 17.21.