"A surging stock market and a flurry of deal-making padded the profits of Wall Street's two big investment banks, which both saw a double-digit jump in profits in the fourth quarter. Goldman Sachs's net earnings rose 12% from a year earlier, posting a profit of $4.62 billion, or $14.01 a share. Meanwhile, Morgan Stanley said it earned $4.4 billion, or $2.68 per share, compared to a profit of $3.71 billion, or $2.22 per share, compared to a year earlier."
"Wall Street has been bolstered by the Trump administration's deregulatory policies, which have led corporations to seek out mergers and acquisitions, as well as the surge of investor interest in artificial intelligence companies and those who stand to benefit from the mass adoption of technologies like ChatGPT. Fourth-quarter investment fee revenues over at Goldman were up 25% year-over-year and Morgan Stanley saw a 47% jump in revenue in its investment banking division."
Goldman Sachs and Morgan Stanley each reported double-digit profit growth in the fourth quarter, with Goldman earning $4.62 billion and Morgan Stanley $4.4 billion. A surging stock market, increased deal-making and investor enthusiasm for artificial intelligence boosted investment banking activity and fees. Goldman’s fourth-quarter investment fee revenues rose 25% year-over-year while Morgan Stanley’s investment banking revenue jumped 47%, and both banks reported larger investment fee backlogs. Other large banks also posted higher fourth-quarter profits, though concerns over Federal Reserve independence and potential interest rate caps from the White House tempered results. Goldman sold its Apple Card portfolio to JPMorgan, exiting consumer banking.
Read at Fast Company
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