US banking giants beat expectations
Major US banks Goldman Sachs and Morgan Stanley exceeded expectations by increasing their revenues in the final quarter of 2023.
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US investment banks Goldman Sachs and Morgan Stanley have released their financial statements for the fourth quarter of 2023.
Goldman Sachs' revenue in the fourth quarter of 2023 performed above expectations. The bank's revenue increased by 7 percent to reach a net 11.32 billion dollars, which was beyond expectations. The forecast was 10.84 billion dollars. During the same period, the bank's net profit rose by 51 percent to 2.01 billion dollars, or 5.48 dollars per share. Although revenue from fixed income, currency, and commodities (FICC) sales and trading showed a slight decline, it generally displayed a strong performance.
Morgan Stanley, on the other hand, reported revenue above estimates, driven by the impact of its investment banking revenues. The bank's revenue rose by 1.2 percent to 12.9 billion dollars, which was also above what was expected. However, earnings per share fell to 85 cents, remaining below expectations. Net profit declined to 1.5 billion dollars compared to the same period of the previous year. The increase in institutional investment banking revenue and net revenue from wealth management supported the bank's overall revenue.
With the data released, both banks had a strong quarter, performing above expectations.