Goldman Sachs Books Huge 4Q Profit On Deal Financing, Its Own Trades, Lower Compensation Expenses

By Mike Obel | January 16 2013 9:40 AM

Goldman Sachs Group, Inc. (NYSE:GS) surprised Wall Street on Wednesday by posting a huge jump in its fourth-quarter profit as the bank's own investments surged, revenue from debt and equity financing increased and compensation came in lower than expected.

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The bank earned $2.89 billion, or $5.60 per share, in the last three months of 2012. Analysts had expected net income of $1.78 billion, or $3.70 per share. Revenue climbed 53 percent to $9.2 billion from $6 billion in the year-earlier period.

Shares surged more than 2 percent in pre-market trading after the strong earnings report.

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