New York lender Goldman Sachs dwarfs profit estimate as fourth-quarter profit doubles



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New York lender Goldman Sachs dwarfs profit estimate as fourth-quarter profit doubles

On Tuesday, Goldman Sachs Group Inc, the New York City-based lender and financial services provider had unveiled its quarterly earnings’ report for fourth quarter of 2020 which had insanely beaten Wall Street estimates as a blowout performance at its trading business alongside a sharp uptick in capital inflows from underwriting a cascade of blockbuster Initial Public Offerings (IPOs) later last year had doubled up the American multinational lender’s fourth-quarter profit.

Apart from that, Goldman Sachs’ global market revenues that hosts that lender’s trading businesses had scored its best performance in a decade last year on an annualized basis, as investors portfolios were rattled several occasions last year amid a pandemic-driven roller-coaster ride in global fiscal activities, while the main revenue-generating machine for Goldman Sachs, its cut from trading activities, skyrocketed by a whopping 43 per cent in 2020 on a year-on-year basis.

On a quarterly basis, Goldman Sachs’ revenues climbed 23 per cent to $4.27 billion compared to the same time a year earlier, while the New York City-headquartered lender’s investment banking revenue jumped as much as 27 per cent to $2.61 billion on Q4, 2020.

Nonetheless, Goldman Sachs’ investment banking revenue torrented by an eye-propping 195 per cent in the fourth quarter of 2019.

Goldman Sachs Chief predicts better market stability in 2021

In tandem, according to the American multinational lender’s quarterly earnings’ report for Q4, 2021, Goldman Sachs’ total revenue surged by 18 per cent to $11.74 billion, while the lender’s net income soared to $4.36 billion or $12.08 per share in Q4, 2020, compared to the same time a year earlier.

Nonetheless, after rising as much as 2.6 per cent in the pre-market trading, shares’ prices of Goldman Sachs plunged 1.58 per cent to $296.39 on late-afternoon US trading, mostly dictated by a lift in pandemic cases alongside a trade tension between the US and China, the world’s first- and second-largest economy respectively.

Meanwhile, expressing a cautiously optimistic outlook on 2021 following a solid fourth-quarter earnings’ report, Goldman Sachs Chief Executive David Solomon said in a post-earnings conference call with the reporters, “We hope this year brings much needed stability and a respite from the pandemic, but we remain ready to handle a wide range of outcomes”.