INSUBCONTINENT EXCLUSIVE:
Goldman Sachs topped analysts' revenue estimates on Wednesday as stronger equities trading revenue cushioned bond trading losses, making it
only Wall Street bank so far to show growth in fourth-quarter trading revenue.
By contrast, trading units at JPMorgan Chase and Citigroup
took a beating in fourth quarter, as sharp losses in bond trading outweighed any gains from stocks trading.
At Goldman, which is more
sensitive to market fluctuations than its peers, overall trading revenue rose 2 percent in three months ended December.
Equities trading
revenue jumped 17 percent to $1.60 billion, while bond trading revenue slid 18 percent to $822 million, far from its peak of more than $6
billion.
Citi's bond trading revenue fell 21 percent, while JPMorgan saw a 16 percent fall
Equities trading at both banks climbed.
Goldman's net earnings attributable to common shareholders reached $2.32 billion or $6.04 per
share in three months ended Dec
31, compared with a loss of $2.14 billion or $5.51 per share a year earlier.
Analysts were looking for a profit of $4.45 per share,
according to IBES estimates from Refinitiv, although it was not immediately clear if numbers were comparable.
The year-ago results included
a one-off charge related to a change in United States tax laws.
Total net revenue was $8.08 billion, above analysts' average estimate of
$7.63 billion, according to IBES data from Refinitiv.
Goldman's shares rose 3.4 percent in early trading on Wednesday
Its shares have fallen 30 percent over last 12 months, and over 25 percent in fourth quarter, after headlines about bank's involvement in
Malaysian 1MDB scandal emerged.
The company did not provide an update on any expenses related to scandal in its press statement, but said in
its presentation that Chief Executive Officer David Solomon is expected to provide commentary on matter during a conference call with
