NEW YORK – Wall Street’s major investment banks, buoyed by a robust stock market and a wave of mergers, enjoyed a substantial increase in profits during the fourth quarter. Both Goldman Sachs and Morgan Stanley reported double-digit profit growth.

Goldman Sachs revealed a 12% rise in net earnings compared to the previous year, achieving a profit of $4.62 billion, or $14.01 per share. In parallel, Morgan Stanley announced profits of $4.4 billion, or $2.68 per share, up from $3.71 billion, or $2.22 per share, a year earlier.

The Trump administration’s deregulatory stance has invigorated Wall Street, encouraging companies to pursue mergers and acquisitions. Additionally, investor enthusiasm in the burgeoning artificial intelligence sector, including technology such as ChatGPT, has further fueled market activity.

Goldman Sachs saw a 25% increase in investment fee revenues compared to the previous year, while Morgan Stanley experienced a 22% rise within its investment banking division. Both financial giants reported a notable increase in their backlog of investment fees, indicating a healthy pipeline of pending deals.

The strong performances of Goldman and Morgan Stanley mirrored the earnings reported by other major banks this week. Although JPMorgan Chase, Bank of America, and Citigroup also posted profit gains in the fourth quarter, their results were somewhat overshadowed by ongoing disagreements with the White House over Federal Reserve independence and President Donald Trump’s push to cap credit card interest rates at 10%.

In addition to its robust investment banking results, Goldman Sachs last week decided to exit its brief foray into consumer banking by selling its Apple Card credit card portfolio to JPMorgan Chase. The sale, conducted at a discount, underscores Goldman’s eagerness to distance itself from this venture.