Goldman Sachs’ profit rises on dealmaking, trading strength

The logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. (Richard Drew / AP)

Goldman Sachs’ profit rose in the fourth quarter, fueled by dealmaking, stronger trading revenues in a turbulent market and a one-time gain from exiting its credit card partnership with Apple.

The bank’s equity traders capitalized on volatility and a broader rally in the U.S. market as investors speculated on the Federal Reserve’s interest-rate path and the prospects for AI companies.

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Goldman’s equity revenue rose to US$4.31 billion, up from $3.45 billion a year ago, while trading revenue for fixed income, currencies, and commodities climbed 12.5 per cent to $3.11 billion.

The bank struck a deal with JPMorgan Chase to take over its Apple card partnership. Goldman expected a 46 cent per share increase in its results due to the exit.

Its profit attributable to common shareholders rose to $4.38 billion in the fourth quarter, or $14.01 per share, compared with $3.92 billion, or $11.95 per share, a year earlier.

Unwinding consumer business

Shedding the Apple card is Goldman’s latest big step away from its ill-fated consumer business. The exit comes as other lenders are expressing concerns about U.S. President Donald Trump’s proposal to cap credit card interest rates at 10 per cent.

Goldman’s earnings also got a lift from the release of $2.48 billion from its stockpiles to cover loan losses from the card. Morningstar estimated the bank would gain $145 million from the transaction.

Strong M&A market

A friendlier regulatory environment under U.S. President Donald Trump, lower interest rates and excess cash have led companies to pursue more deals.

Goldman’s fees from investment banking rose 25 per cent to $2.58 billion versus a year ago.

The investment bank advised on some large mergers in 2025, including the $56.5 billion leveraged buyout of Electronic Arts and Alphabet’s $32 billion acquisition of cloud security firm Wiz.

These outsized deals helped it secure the top spot once again for global M&A in 2025, with the bank advising on $1.48 trillion in total volume of deals and raking in $4.6 billion in fees.

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Top dealmakers expect the rally in mergers - which climbed near record levels in 2025 - to continue this year as large AI investments fuel more tech deals.

Global M&A volumes swelled to $5.1 trillion in 2025, up 42% from 2024, according to Dealogic data.

(Reporting by Utkarsh Shetti in Bengaluru and Saeed Azhar in New York; Editing by Lananh Nguyen and Arun Koyyur)