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Goldman earnings 4Q 2021

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David M. Solomon is Chairman and CEO at Goldman Sachs. He spoke during the 22nd Annual Global Conference of Milken Institute in Beverly Hills on April 29, 2019.

Reuters| Reuters

Goldman SachsThe fourth quarter earnings are expected to be reported before Tuesday’s opening bell.

This is what Wall Street wants:

  • Earnings were $11.76 for each share. This is 2.7% more than the previous year, Refinitiv reports.
  • Revenue: $12.08Billion. This is 2.9% less than one year ago.
  • FactSet: Trading Revenue: Fixed Income $1.79Billion; Equities $2.43B.
  • Investment banking revenue: $3.25 Billion

Goldman Sachs has thrived during the past two years — a booming period in capital markets that suited the bank’s Wall Street-centric business model.

What will be the next step for CEO David Solomon’s bank?

This question is pertinent because red-hot markets for trading over the last year will likely cool in 2022. The fourth quarter is likely to see a decline in fixed income trading.

This is expected to be compensated by strong investment banking revenue, despite a high number of SPAC and merger deals. Analysts will eagerly ask Solomon about the future of the transaction pipeline in 2022.

Retail banks are gaining favor among investors, even though trading revenue should recover from record levels. Because big bank peers are like Wells FargoAnd Bank of AmericaAs interest rates rise, it is expected that they will prosper.

Goldman’s new retail banking business, while a small part of its overall bottom line contribution is not yet significant. Analysts will however be curious to learn how Goldman expects to take advantage of emerging fintech opportunities.

Marcus’ consumer banking division includes loans, savings, personal finance apps and loans. It also offers a corporate cash management option and Goldman’s. foray into cloud computingHedge fund clients

Goldman’s shares fell less than 1 percent Tuesday, after jumping more than 45% in the previous year.

JPMorgan Chase and Citigroup posted their fourth quarter results last week that exceeded expectations. However, Citigroup shares and JPMorgan Chase were sold to cover higher than expected expenses. On Wednesday, Morgan Stanley and Bank of America closed out large bank earnings.  

The story is still in development. Stay tuned for new updates.

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