NEW YORK (AP) — Goldman Sachs went some way to restoring its reputation as a Wall Street powerhouse after its earnings almost tripled in the fourth quarter, handily beating analysts' estimates, as investment banking revenues surged.
The investment bank earned $2.83 billion after paying preferred dividends, compared with $978 million a year earlier in the period ending Dec. 31, 2012.
The bank's debt underwriting business profited from a rally in bonds and a surge in demand for debt securities. Goldman's debt underwriting business earned $1.96 billion in revenues for the year, its second-best annual performance and the highest since 2007. An increase in stock underwriting also helped boost revenues.
"The fourth quarter reminds us a little of the old days and should give investors confidence in Goldman's future earnings power," Glenn Schorr, an analyst at Nomura, wrote in note to clients.
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