Goldman’s profit surges on record M&A wave
Goldman Sachs cashed in big time on the flurry of M&A deals and capital markets activity that’s sweeping Wall Street.
The investment bank reported Friday that its quarterly net earnings skyrocketed 60%, crushing analysts’ estimates, as its revenue jumped by over a fourth.
Pumping up those profits: a surge in lucrative advisory fees stemming from the record wave of deals. Goldman gets a third of its revenue from its investment banking business, and revenue in that unit nearly doubled, making it its second-best quarter ever.
Refinitive data show Goldman is comfortably #1 in global M&A advisory.
The company’s biggest revenue-generating unit, global markets, also did well. Trading rose 26%, reflecting strong performance in equities.
Shares of Goldman rose in early trading Friday.
Goldman’s robust results caps a banner quarter for the U.S.’ biggest banks which saw profits jump amid a surge in dealmaking and the release of reserves set aside for bad loans.
