Goldman Sachs Profit More Than Doubles, Powered by Trading

By Peter Rudegeair

Goldman Sachs Group Inc. reported sharply higher profits for the fourth quarter, punctuating a turbulent year in which the Wall Street firm benefited from the markets' quick recovery from the worst of the pandemic-induced recession.

Goldman on Tuesday reported quarterly profit of $4.51 billion, or $12.08 a share, more than double its level from the same quarter a year ago. Revenue of $11.74 billion was 18% above 2019's fourth-quarter level. Both measures were much better than the expectations of analysts polled by FactSet, who forecast profit of $7.39 a share on revenue of $9.99 billion.

For the U.S. banking industry, 2020 was a rollercoaster year. Markets plunged and economic activity declined in the spring as coronavirus spread across the country. With many businesses closed and many consumers out of work, banks girded themselves for widespread defaults. A robust federal spending program helped forestall the worst-case economic scenario, and in earnings reports last week, bank executives signaled the economy has held up better than expected.

Write to Peter Rudegeair at Peter.Rudegeair@wsj.com

(END) Dow Jones Newswires

January 19, 2021 08:09 ET (13:09 GMT)

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