Publications
Partners
London - Goldman, the fifth-largest US bank by assets, reported earnings of $2.8bn, or $5.60 per share, up from $978m, or $1.84 per share, in the same period a year ago.
Analysts mostly had been forecasting much lower figures. Following its early morning report on Wednesday, Goldman shares were up 1.8% at $138 in premarket trading.
A significant part of Goldman's earnings boom came from improvements in market values in the stock and bond markets, as well as increased activity.
The New York-based investment bank said it took in "significantly higher" revenues from credit products and mortgages in its bond-trading business. Its investing and lending division, which mostly earns money from higher values on Goldman's own stock and bond investments, reported nearly $2bn worth of revenue.
But gains were broad, with revenue up across each of Goldman's business lines, from investment banking to investment management. Overall, its revenue rose 53% to $9.2bn from $6bn in the fourth quarter of 2011.
Goldman's earnings were also helped by a sharp decline in compensation expenses, typically the biggest cost for Wall Street firms.
The bank said compensation fell 11% in the fourth quarter compared with a year ago. The expense was just 21% of net revenue, roughly half of what the firm usually pays out to employees.
Analysts mostly had been forecasting much lower figures. Following its early morning report on Wednesday, Goldman shares were up 1.8% at $138 in premarket trading.
A significant part of Goldman's earnings boom came from improvements in market values in the stock and bond markets, as well as increased activity.
The New York-based investment bank said it took in "significantly higher" revenues from credit products and mortgages in its bond-trading business. Its investing and lending division, which mostly earns money from higher values on Goldman's own stock and bond investments, reported nearly $2bn worth of revenue.
But gains were broad, with revenue up across each of Goldman's business lines, from investment banking to investment management. Overall, its revenue rose 53% to $9.2bn from $6bn in the fourth quarter of 2011.
Goldman's earnings were also helped by a sharp decline in compensation expenses, typically the biggest cost for Wall Street firms.
The bank said compensation fell 11% in the fourth quarter compared with a year ago. The expense was just 21% of net revenue, roughly half of what the firm usually pays out to employees.
