Goldman Sachs, along with other big banks, has benefited from rising optimism about the US economy under Donald Trump. Dominik Reuter / AFP
Goldman Sachs, along with other big banks, has benefited from rising optimism about the US economy under Donald Trump. Dominik Reuter / AFP



Goldman Sachs reported a nearly fourfold rise in quarterly profit on Wednesday as it benefited, like other big banks, from a surge in trading following Donald Trump’s surprise win in November’s presidential election.

Goldman’s net income attributable to common shareholders soared to US$2.15 billion in the fourth quarter ended December 31 from $574 million a year earlier, when the Wall Street bank was hit with a $5bn legal settlement. Earnings per share jumped to $5.08 from $1.27.

On an adjusted basis, the bank earned $5.08 per share, handily beating the average analysts’ estimate of $4.82, according to Reuters.

Goldman’s revenue from trading fixed-income securities, currencies and commodities shot up 78.3 per cent to $2bn.

Morgan Stanley, Goldman’s closest rival, reported on Tuesday that its revenue from fixed-income trading jumped about 173 per cent in the latest quarter.

While Goldman typically relies more on trading than its competitors, the bank has been trying to shift its model over the last few years to rely less on the business and more on stable markets such as investment management. The bank has also made a push into consumer lending, launching an online platform called Marcus late last year.

Goldman’s total net revenue jumped 12.3 per cent to $8.17bn, beating the average estimate of $7.72bn.

“After a challenging first half, the firm performed well for the remainder of the year as the operating environment improved,” said the chief executive and chairman Lloyd Blankfein.

Goldman’s shares were up slightly in premarket trading, having risen about 30 per cent since the election.

Bank stocks soared in the aftermath of Mr Trump’s win as investors took he view that his policies would lead to a stronger US economy and less-stringent banking regulation.

Goldman, which said in 2016 that it had launched a program to cut $700m in annual costs, said its operating expenses dropped 23 per cent to $4.77bn in the latest quarter.

Full-year expenses fell 18.9 per cent to $20.3bn, the lowest since 2008, the bank said.

Annualized return-on-equity – a measure that shows how well a bank uses shareholder money to generate profit – was 11.4 per cent in the quarter, above the 10 per cent that analysts tend to think is needed to cover a bank’s cost of capital.

Investment banking revenue, which includes income from advising on mergers and acquisitions as well as underwriting bond and share offerings, fell 3.9 per cent to $1.49bn.

The bank maintained its position as the world’s biggest M&A adviser in 2016 with a 35.9 per cent market share of completed deals, according to Reuters data, ahead of Morgan Stanley and JP Morgan.

Revenue from investment management rose 3.4 per cent to $1.61bn.

Citigroup, meanwhile, reported a 7 per cent rise in fourth quarter profits on Wednesday, also helped by a strong performance in trading business.

The company said it earned $3.57bn in the fourth quarter, or $1.14 per share, compared with $3.34bn, or $1.02 per share, in the same period a year earlier. The results were slightly above analysts’ estimates of $1.12 per share.

Citi’s institutional clients group, which includes the firm’s investment bank and trading, reported net income of $2.47bn in the quarter compared with $1.26bn in the same period a year earlier. Bond trading, one of Citi’s specialties, reported a 36 per cent rise in revenue.

Citi’s global consumer banking business, which includes its retail bank and credit card business, had net income of $1.27bn, down 7 per cent from a year earlier. While Citi said the business was helped by the acquisition of the Costco credit card business, other parts of the firm’s business saw declines. Citi has been trying to close or relocate branches to cut expenses.

The US bank posted revenue of $20.29bn in the period. Its adjusted revenue was $17.01bn, which missed Street forecasts. Three analysts surveyed by Zacks expected $17.05bn.

* Agencies

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MATCH INFO

Jersey 147 (20 overs) 

UAE 112 (19.2 overs)

Jersey win by 35 runs

How to report a beggar

Abu Dhabi – Call 999 or 8002626 (Aman Service)

Dubai – Call 800243

Sharjah – Call 065632222

Ras Al Khaimah - Call 072053372

Ajman – Call 067401616

Umm Al Quwain – Call 999

Fujairah - Call 092051100 or 092224411

The specs: 2019 GMC Yukon Denali

Price, base: Dh306,500
Engine: 6.2-litre V8
Transmission: 10-speed automatic
Power: 420hp @ 5,600rpm
Torque: 621Nm @ 4,100rpm​​​​​​​
​​​​​​​Fuel economy, combined: 12.9L / 100km

India squad

Virat Kohli (captain), Rohit Sharma, Mayank Agarwal, K.L. Rahul, Shreyas Iyer, Manish Pandey, Rishabh Pant, Shivam Dube, Kedar Jadhav, Ravindra Jadeja, Yuzvendra Chahal, Kuldeep Yadav, Deepak Chahar, Mohammed Shami, Shardul Thakur.

Racecard

8.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (Turf) 1,200m
9pm: Yas Island – Handicap (PA) Dh80,000 (T) 1,400m
9.30pm: Saadiyat Island – Handicap (PA) Dh80,000 (T) 1,600m
10pm: Reem Island – Handicap (PA) Dh80,000 (T) 2,200m
10.30pm: Arabian Triple Crown Round 3 – Group 3 (PA) Dh300,000 (T) 2,400m
11pm: Al Maryah Island – Handicap (TB) Dh80,000 (T) 1,600m

Empire of Enchantment: The Story of Indian Magic

John Zubrzycki, Hurst Publishers

Company Profile

Company name: myZoi
Started: 2021
Founders: Syed Ali, Christian Buchholz, Shanawaz Rouf, Arsalan Siddiqui, Nabid Hassan
Based: UAE
Number of staff: 37
Investment: Initial undisclosed funding from SC Ventures; second round of funding totalling $14 million from a consortium of SBI, a Japanese VC firm, and SC Venture

Sanju

Produced: Vidhu Vinod Chopra, Rajkumar Hirani

Director: Rajkumar Hirani

Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani

Rating: 3.5 stars

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

The specs

Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 7-speed dual-clutch auto
Fuel consumption: 10.5L/100km
On sale: Now
Price: From Dh129,999 (VX Luxury); from Dh149,999 (VX Black Gold)

Dubai World Cup Carnival card

6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m

7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m

7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m

8.15pm: Handicap (TB) $175,000 (D) 1,600m

8.50pm: Handicap (TB) $135,000 (T) 1,600m

9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m

10pm: Handicap (TB) $135,000 (T) 2,000m

The National selections:

6.30pm - Ziyadd; 7.05pm - Barney Roy; 7.40pm - Dee Ex Bee; 8.15pm - Dubai Legacy; 8.50pm - Good Fortune; 9.25pm - Drafted; 10pm - Simsir

Indika

Developer: 11 Bit Studios
Publisher: Odd Meter
Console: PlayStation 5, PC and Xbox series X/S
Rating: 4/5

UAE currency: the story behind the money in your pockets
Results

5pm: Maiden (PA) Dh80,000 (Turf) 1,200m, Winner: ES Rubban, Antonio Fresu (jockey), Ibrahim Aseel (trainer)

5.30pm: Handicap (PA) Dh85,000 (T) 1,200m, Winner: Al Mobher, Sczcepan Mazur, Ibrahim Al Hadhrami

6pm: Handicap (PA) Dh80,000 (T) 2,200m, Winner: Jabalini, Tadhg O’Shea, Ibrahim Al Hadhrami

6.30pm: Wathba Stallions Cup (PA) Dh70,000 (T) 2,200m, Winner: AF Abahe, Tadgh O’Shea, Ernst Oertel

7pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: AF Makerah, Tadhg O’Shea, Ernst Oertel

7.30pm: Maiden (TB) Dh80,000 (T) 1,600m, Winner: Law Of Peace, Tadhg O’Shea, Satish Seemar

COMPANY PROFILE

Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends

MATCH INFO

Uefa Champions League, last 16, first leg

Liverpool v Bayern Munich, midnight (Wednesday), BeIN Sports

The Specs

Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now

Profile box

Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)


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