Goldman Sachs earnings top forecasts as stock trading offsets deal slump

Updated at 8:46 AM EST

Goldman Sachs  (GS) - Get Free Report posted better-than-expected fourth-quarter earnings Tuesday, even as deal fees slumped and the group handed mover more than $500 million to the Federal Deposit Insurance Corp. to pay for last year's regional-bank rescues. 

Earnings for the three months ended in December were $2.01 billion, or $5.48 per share, up 51% from the same period in 2022 but well ahead of the Wall Street consensus forecast of $3.51 per share. 

Goldman also said it paid $529 million to the FDIC as part of its Special Assessment fee linked to the spring rescue of several regional U.S. banks

Group revenue, Goldman said, rose 6.9% to $11.32 billion, topping analysts' forecasts of a $10.8 billion total.

Investment banking fees 12% from the fourth quarter of 2022 to $1.65 billion, Goldman said. Fixed-income revenue was down 24% to $2.03 billion, while equity trading revenue rose 26% and wealth management rose 23% to $4.39 billion.

Merger activity slumped to the lowest levels in a decade last year, with overall volumes down 18% from 2022 levels, according to LSEG data, with around $3 trillion in deals completed. In the U.S. overall deals fell 8% to around $1.42 trillion.

"This was a year of execution for Goldman Sachs. With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024," said CEO David Solomon. 

"Our strategic objectives underscore our relentless commitment to serve our clients with excellence, further strengthen our leading client franchise and continue to deliver for shareholders,” he added. 

Goldman Sachs shares were marked 0.63% higher in pre-market trading immediately following the earnings report to indicate an opening bell price of $380.12 each.

• Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.