“(Reuters) – Goldman Sachs Group Inc said its fourth-quarter earnings nearly tripled, driven by big gains in stock and bond values, increased revenue from dealmaking and lower compensation expenses.
Goldman, the fifth-largest U.S. bank by assets, reported earnings of $2.8 billion, or $5.60 per share, up from $978 million, 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 percent 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 $2 billion worth of revenue….”
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