Goldman Sachs, a globally renowned investment bank, released its Q4 2023 financial report. From business data, Goldman Sachs achieved a revenue of $11.32 billion in the fourth quarter of last year, higher than the expected $10.8 billion; Net profit surged by 51% to $2.01 billion, with diluted earnings per common share (EPS) of $5.48, far exceeding the same period last year's $3.32 and far exceeding analyst forecasts. As of publication, Goldman Sachs rose 0.99% to $381.49.
From the overall performance of 2023, Goldman Sachs had a revenue of $46.25 billion, a decrease of 2% compared to 2022; The net profit was 8.52 billion US dollars, a decrease of 24% year-on-year. It should be noted that this is the lowest profit point for Goldman Sachs in the past four years since 2019, with profit decline second only to Citibank.
In 2023, Goldman Sachs global banking and market net revenue was $30 billion, a decrease of 8% from 2022. Among them, the operating revenue of investment banking business was 6.22 billion US dollars, 16% lower than in 2022, due to a significant decrease in net revenue from consulting business, which also reflects a decrease in the number of mergers and acquisitions completed by the entire industry.
The net income of Fixed Income, Currency, and Commodities (FICC) was $12.06 billion, 18% lower than in 2022, mainly due to a significant decrease in net income from interest rate products and currency, as well as a slight decrease in net income from FICC's financing business.
The net revenue from stock sales and trading business was $11.55 billion, a record breaking 5% increase from 2022. The company ranks first globally in announced and completed mergers and acquisitions, stock and stock related issuances, and common stock issuances.
Last year, Goldman Sachs focused on simplifying its strategy and actively developed its core asset and wealth management departments. Data shows that the net income of the company's core assets and wealth management company in the fourth quarter of 2023 was $4.39 billion, 23% higher than the fourth quarter of 2022, due to an increase in investment income from stocks and bonds and an increase in management fees. Throughout 2023, core assets and wealth management companies generated a net income of $13.88 billion, including record breaking management and other expenses, as well as record breaking private banking revenue and net loan income.
It should be noted that in the fourth quarter of 2023, Goldman Sachs not only announced the suspension of its retail consumer business with Apple, but also sold consumer lending institution GreenSky at a significant discount. In the current situation where IPO, mergers and acquisitions, and transaction sentiment are still relatively flat, Goldman Sachs is vigorously developing its loan business for high net worth customers.
The CEO of Goldman Sachs stated that it will continue to reduce the negative impact of exiting the partnership with Apple, and it is expected that the "drag" caused by the credit card partnership will be significantly reduced in 2024.
Like other banking peers, Goldman Sachs also paid $529 million to the Federal Deposit Insurance Corporation (FDIC) for the regional banking crisis in the United States. The special assessment fee for this FDIC is to recover losses incurred by the Deposit Insurance Fund (DIF) due to the protection of uninsured depositors of Silicon Valley banks and signature banks. JPMorgan Chase paid $2.9 billion to FDIC, Bank of America paid $2.1 billion, Wells Fargo paid $1.9 billion, Citibank paid $1.7 billion, and Morgan Stanley paid $286 million for it.
Goldman Sachs also disclosed in its latest financial report that after experiencing a wave of layoffs in 2023, the company's workforce has decreased by 7% in the past year.