Goldman Sachs Group Inc. reported a nearly four-fold rise in quarterly profit on Wednesday as it benefited, like other big banks, from a surge in trading following Donald Trump’s surprise win in November’s presidential election.
Goldman’s net income attributable to common shareholders soared to $2.15 billion in the fourth quarter ended December 31 from $574 million a year earlier, when the Wall Street bank was hit with a $5 billion legal settlement.
Earnings per share jumped to $5.08 from $1.27.
On an adjusted basis, the bank earned $5.08 per share, handily beating the average analysts’ estimate of $4.82, according to Thomson Reuters.
Goldman’s revenue from trading fixed-income securities, currencies and commodities shot up 78.3 percent to $2.00 billion.
Morgan Stanley, Goldman’s closest rival, reported on Tuesday that its revenue from fixed-income trading jumped about 173 percent in the latest quarter.
While Goldman typically relies more on trading than its competitors, the bank has been trying to shift its model over the last few years to rely less on the business and more on stable markets such as investment management.
The bank has also made a push into consumer lending, launching an online platform called Marcus late last year.
Goldman’s total net revenue jumped 12.3 percent to $8.17 billion, beating the average estimate of $7.72 billion.
“After a challenging first half, the firm performed well for the remainder of the year as the operating environment improved,” Chief Executive and Chairman Lloyd Blankfein said in a statement.