Jan 15 (Reuters) - 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.
Goldman's equity revenue rose to $4.31 billion, up from $3.45 billion a year ago, while trading
revenue for fixed income, currencies, and commodities climbed 12.5% 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%.
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 President Trump, lower interest rates and excess cash have led companies to pursue more deals.
Goldman's fees from investment banking rose 25% 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.
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)
