Goldman Sachs Reports Strong Q4 Profits Amid Market Rebound and Strategic Success in 2023
CEO David Solomon Optimistic as Goldman Sachs Navigates Market Challenges and Achieves Growth Across Divisions
Big news from Goldman Sachs! They made 51% more money in the last quarter because their stock traders did well in the better markets. On Tuesday, the bank told everyone that they earned $2.01 billion, or $5.48 per share, in the recent quarter. Last year, during the same time, they made $1.33 billion, or $3.32 per share. That's a big jump!
Goldman Sachs' boss, David Solomon, said, "We did a lot of good things in 2023, and now, with our simple plan, we're even stronger for 2024."
Why did they make more money? Well, the stock markets are doing better because people believe the U.S. won't have a tough time. People are also talking about when the Federal Reserve might make interest rates lower, which could make more things happen in the markets.
Goldman Sachs' stock traders made 26% more money in the last quarter. The part of the bank that takes care of people's money and investments also did well, making 23% more at $4.39 billion. They got a boost from making money with stocks and loans.
But not everything was great. The money Goldman Sachs got from helping companies with deals fell by 12% from last year, to $1.65 billion. Less business deals canceled out the money they made from selling stocks and loans.
They also didn't make as much money from trading currencies and loans. This part of their business fell by 24% because interest rates and money from other countries weren't doing well. This affected how much money they made from home loans.
About the people who work at Goldman Sachs – they had 1% fewer workers at the end of December than in the last three months. Compared to last year, they have almost 7% fewer workers. The bank let go of a lot of workers in 2023, especially in January, which was the biggest layoff since the big money crisis in 2008.
Goldman Sachs has a part of their business that deals with regular people, like you and me. This part made 12% more money, reaching $577 million.
The big banks, including Goldman Sachs, have to pay extra money to help the government put back the money they lost when two smaller banks failed last year. Goldman Sachs paid $529 million for this in the last quarter.