Goldman Sachs on Tuesday, January 16, published its financial results for the fourth quarter of last year.
The revenue of the mentioned bank for the period from October to December 2023 was fixed at the level of $11.3 billion. This figure is 7% higher than the result for the last quarter of 2022. Moreover, the financial institution’s revenue significantly exceeded the preliminary expectations of Wall Street analysts. Experts predicted that this indicator of the bank’s activity for the fourth quarter of 2023 would amount to $10.8 billion.
The profit of the financial institution for the period from October to December 2023 amounted to more than $2 billion. This figure is approximately 51% higher than the result for the fourth quarter of 2022.
Last year, the financial institution focused on simplifying its business strategy. Also, the focus of one of the largest players in the American banking sector was a change in the approach to investing. The results of the activity indicate that many of the lender’s decisions regarding the functioning strategy were correct.
At the same time, some units of the financial institution showed negative indicators for the last quarter. Revenue from investment banking for the period from October to December 2023 decreased by 12% compared to the result for the last three months of 2022. In monetary terms, this figure is just under $1.7 billion.
The bank’s trading revenue for the fourth quarter of 2023 was fixed at $4.6 billion. This figure is 2.5% lower than the result for the same period in 2022.
The financial institution’s revenue from asset and wealth management in the fourth quarter of 2023 amounted to $4.39 billion. This figure is 23% higher than the result for the same period in 2022.
The Goldman Sachs platform solutions unit, which houses some of its consumer operations, reported revenue of $577 million. This indicator increased by 12% year-on-year.
David Solomon, CEO and Chairman of the Board of Goldman Sachs, said that 2023 was a year of achievement for this financial institution. According to him, the results over the past 12 months, combined with a clear and simplified strategy, create a strong platform for 2024.
At the same time, the mentioned characteristic of 2023 in terms of activity indicators of Goldman Sachs does not include certain negative aspects that do not cancel out the achievements of the lender. David Solomon had to face difficulties due to the dormant of capital markets and certain strategic missteps. Also in 2023, unsuccessful efforts by the head of a financial institution in the consumer banking area were recorded. However, the last 12 months have not been a period of total and critical failures for the bank, and a strong platform for 2024 is an objective fact, not diluted with exaggerations and moderate artifices.
Last year, the financial institution reduced its ambitions in consumer markets. The bank has also completed activities to provide loans to customers on its Marcus platform. The financial institution is currently finalizing credit card cooperation with Apple and General Motors.
Last year, Goldman Sachs, like many other players in the American banking sector, was assessed a one-time fee by the Federal Deposit Insurance Corporation to help pay for the regional lenders crisis. The financial institution paid $529 million to help the Silicon Valley Bank and Signature Bank which were in dire straits after their collapse.
Goldman Sachs’ core business in the sphere of investment banking and trading did not show significant improvement in the fourth quarter of 2023. Analysts admit the possibility of recovery in this segment of the lender’s business this year.
Goldman Sachs, unlike its competitors, which are more involved in diversification, gets most of its revenue from Wall Street. Such a strategy can lead to excessive returns during boom times and low levels of efficiency during periods when markets are not cooperating.
Last year, the financial institution reduced the number of staff by 7%, laying off 3,200 employees.
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