Goldman Sachs market volatility, delivers lower profits in Q4, but beats full-year estimates.

  • Q4 2023:
    • Net revenues: $11.32 billion, down from $11.84 billion in Q4 2022
    • Net earnings: $2.01 billion, down from $3.94 billion in Q4 2022
    • Earnings per share (EPS): $3.51, in line with analyst expectations
  • Full Year 2023:
    • Net revenues: $46.25 billion, down from $48.03 billion in 2022
    • Net earnings: $8.52 billion, down from $22.01 billion in 2022
    • EPS: $14.92, exceeding analyst estimates of $14.18

Analysis:

  • Q4 results were broadly in line with expectations, but lower than the previous year due to headwinds in investment banking and equities trading.
  • Full-year performance reflected a challenging market environment but exceeded analysts’ forecasts, showcasing Goldman Sachs’ resilience.
  • Trading revenues declined across both fixed income and equities compared to Q4 2022, a trend seen throughout the financial industry.
  • Investment banking revenue also dropped, as the global economic slowdown dampened M&A activity.
  • However, Goldman Sachs saw continued strength in its asset management and wealth management businesses, which helped mitigate the decline in other areas.

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