Goldman Sachs Group Inc delivered robust fourth-quarter results, with profit attributable to common shareholders rising significantly driven by strong performance in equity trading, investment banking, and a strategic exit from its Apple credit card partnership. The investment bank capitalized on market volatility and increased dealmaking activity to post impressive financial gains.

Fourth Quarter Financial Performance

Goldman Sachs reported substantial growth across key financial metrics for the fourth quarter, demonstrating the strength of its core investment banking and trading operations.

Trading Revenue Strength

The bank's trading divisions delivered exceptional performance, with equity traders successfully capitalizing on market volatility and the broader US market rally. Fixed income, currencies, and commodities trading revenue climbed 12.5% to $3.11 billion, while equity revenue surged to $4.31 billion from $3.45 billion in the previous year.

The strong trading performance reflects Goldman Sachs' ability to navigate turbulent market conditions and benefit from investor speculation regarding Federal Reserve interest rate policies and artificial intelligence company prospects.

Investment Banking and M&A Leadership

Goldman Sachs maintained its dominant position in global mergers and acquisitions, securing the top spot for global M&A advisory services. The bank's investment banking performance highlights include:

Global M&A volumes reached $5.1 trillion, representing a 42% increase from the previous year, with Goldman Sachs capturing significant market share through its advisory services on major transactions.

Strategic Business Transformation

The bank completed a significant strategic move by exiting its Apple credit card partnership through a deal with JPMorgan Chase. This transaction generated a 46 cent per share boost to quarterly results and allowed Goldman Sachs to release $2.48 billion from loan loss reserves. The Apple card exit represents another major step in Goldman Sachs' withdrawal from consumer banking operations, with analysts estimating the bank gained $145 million from the transaction.

Goldman Sachs has reaffirmed its overweight stance on India while setting a Nifty target of 29,300 by the end of 2026, demonstrating continued confidence in the Indian equity market despite recent challenges.

Market Performance and Challenges

The investment bank acknowledged that 2025 proved to be a particularly difficult year for Indian markets, representing the weakest performance in three decades. The challenging environment was attributed to multiple headwinds that created significant pressure on market performance.

Key Factors Behind Weak Performance

The firm identified three primary factors that contributed to the challenging market conditions. An earnings downcycle significantly impacted corporate performance across various sectors, while currency weakness added to investor concerns. Additionally, record levels of foreign selling created substantial outflow pressure on Indian equities.

Outlook and Recovery Expectations

Despite the recent difficulties, Goldman Sachs expects market conditions to improve significantly. The firm anticipates that the negative trends experienced in 2025 will reverse, creating a more favorable environment for Indian equities going forward.

Strategic Position

By maintaining its overweight recommendation on India, Goldman Sachs signals its belief in the country's fundamental strengths and long-term growth potential. The Nifty target of 29,300 by end-2026 reflects the firm's confidence in India's ability to overcome current challenges and deliver substantial returns to investors over the medium term.