Goldman Sachs, Bank of America rock earnings

Goldman Sachs reported better-than-expected profits on Wednesday despite higher legal costs as it works through the 1MDB scandal, while Bank of America's earnings were lifted by higher interest rates.

Goldman reported mixed operational performance across its trading, investing and lending businesses, while Bank of America saw its profits triple compared to a year earlier.

Shares of both banks surged after the results, which were stronger than earnings of some rival banks earlier posted earlier this week.

Goldman Chief Executive David Solomon described conditions in the real economy as "quite robust," echoing other bank executives who downplayed as exaggerated the economic worries that have roiled markets in recent weeks.

"There has been quite a disconnect between the weak market sentiment and the optimism we continue to see in corporate board rooms," Solomon told an analyst conference call.

The investment bank notched fourth-quarter profits of $2.3 billion, after posting a $2.1 billion loss in the same period of the prior year due to one-time costs associated with US tax reform.

Revenues were about flat compared to a year earlier at $8.1 billion.

Goldman Sachs, Bank of America rock earnings

Goldman Sachs reported better-than-expected profits on Wednesday despite higher legal costs as it works through the 1MDB scandal, while Bank of Americas earnings were lifted by higher interest rates. Goldman reported mixed operational performance across its trading, investing and lending businesses, while Bank of America saw its profits triple compared to a year earlier. Shares of both banks surged after the results, which were stronger than earnings of some rival banks earlier posted earlier this week. Goldman Chief Executive David Solomon described conditions in the real economy as quite robust, echoing other bank executives who downplayed as exaggerated the economic worries that have roiled markets in recent weeks. There has been quite a disconnect between the weak market sentiment and the optimism we continue to see in corporate board rooms, Solomon told an analyst conference call. The investment bank notched fourth-quarter profits of $2.3 billion, after posting a $2.1 billion loss in the same period of the prior year due to one-time costs associated with US tax reform. Revenues were about flat compared to a year earlier at $8.1 billion.