Goldman, BofA profits top estimates

Goldman, BofA profits top estimates

Goldman Sachs’ quarterly profit crushed Wall Street’s estimates, while Bank of America’s bottom line fell but breezed past analysts’ targets.

Fred Katayama reports.

Two more big American banks posted results Tuesday that breezed past Wall Street’s targets.

Goldman Sachs’ quarterly profit more than doubled to $4.4 billion, crushing analysts estimates.

Goldman did so well it completely absorbed the $3 billion hit to its annual profits stemming from the settlement with regulators over its role in Malaysia’s IMDB corruption scandal in which U.S. authorities say about $4.5 billion was siphoned from a Malaysian sovereign wealth fund founded in 2009 by then Malaysian prime minister Najib Razak.

Goldman got a boost from the fees it earned for underwriting high-profile IPOs like Airbnb and Doordash.

That lifted its investment banking revenue 27%.

Like other Wall Street banks, its trading revenue also soared as financial market volumes remained high.

Strength in the trading business also bolstered Bank of America.

A 7% revenue increase at its sales and trading unit offset a drop in revenue in consumer banking that was partly caused by lower interest rates.

Bank of America’s profit dropped but it was much better than what analysts had forecast.

The second largest U.S. bank is seen as an economic bellwether.

In a sign of confidence in the economic recovery, the bank released $828 million from its credit reserves.

Its board also approved a $3.2 billion share buyback program.

Shares of BofA and Goldman fell in early trading Tuesday.