Goldman Sachs (NYSE:GS) reported a decline in fourth-quarter net revenues, citing a markdown tied to the transfer of Apple’s large credit-card partnership to JPMorgan Chase.
Despite the revenue dip, earnings surpassed expectations. The firm said the markdown was more than offset by a $2.48-billion reduction in provisions for credit losses, which lifted the bottom line by $2.12 billion.
Performance at Goldman’s global banking and markets division helped cushion results. As with other Wall Street peers, the bank has benefited from market volatility in 2025 driven by factors including shifts in U.S. trade policy and worries about a potential bubble in artificial intelligence-related stocks.
Equities trading revenue jumped 25% year over year to $4.31 billion. Fixed income revenue rose 12% to $3.11 billion, supported by strong demand for interest-rate and commodities products.
Investment banking fees climbed 25% to $2.58 billion, reflecting stronger advisory activity as mergers and acquisitions volumes stayed elevated despite prolonged market turbulence.
“We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026, activating a flywheel of activity across our entire firm. While there are meaningful opportunities to deploy capital across our franchise and to return capital to shareholders, our unwavering focus remains on maintaining a disciplined risk management framework and robust standards,” CEO David Solomon said in a statement.
On an overall basis, net revenues slipped 3% to $13.45 billion, while earnings per share came in at $14.01, well above expectations of $11.48.
“[T]he core businesses are performing well […], but the [earnings per share] number received a large […] boost from provisions while operating expenses ran hot,” analysts at Vital Knowledge wrote in a note.
Shares of the bank were modestly lower in U.S. premarket trading on Thursday.
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Goldman Sachs is a global financial institution providing investment banking, securities, asset and wealth management services to corporations, financial institutions, governments, and individuals worldwide.