Goldman Sachs has posted a 153% year-on-year surge in Q4 2020 net earnings, with growth across all business units mainly Global Markets and Investment Banking.
The investment bank’s net earnings applicable to common shareholders for the quarter to December 2020 was $4.36bn, compared with $1.72bn in the prior year.
Total net revenues in Q4 2020 were $11.74bn, up 18% from $9.95bn in Q4 2019.
Net interest income soared 32% to $1.41bn from $1.06bn. Provision for credit losses dropped to $293m from $336m a year earlier and $278m in the previous quarter.
The asset management unit generated $3.21bn in revenue, a 7% rise from a year ago.
The rise was driven by higher net revenues in Lending and debt investments, which was offset by slightly lower net revenues in Equity investments.
Net revenues in Global Markets surged 23% to $4.27bn on a year-on-year basis. Net revenues in Equities jumped 40% to $2.39bn while net revenues in FICC increased 6% to $1.88bn.
Wealth management highlights
Wealth management revenues of $1.31bn in the October-December quarter was 11% higher than a year ago. This was attributed to higher management and other fees.
Net revenues in Private banking and lending remained were higher, due to net interest income on mortgages.
Overall, net revenues in the Consumer & Wealth Management division increased 17% year-on-year to $1.65bn.
Goldman Sachs chairman and CEO David Solomon said: “It was a challenging year on many fronts, and I am deeply proud of how our people helped clients respond to the economic disruption brought on by the pandemic and the extreme market volatility experienced over the past months. Our people responded admirably to a series of professional and personal challenges, while working from home or in offices that were reshaped dramatically.”
The bank was recently in the news for signing an agreement to take 100% control of its securities joint venture in China.