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This article, originally published at 8:09 a.m. on Wednesday, Jan. 18, 2017, has been updated with comments from analysts and executives.

Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. Report , the investment bank whose COO stepped down to take a high-ranking economic post in President-elect Donald Trump's administration, posted higher growth than two of its biggest rivals in a trading boom after the celebrity real estate mogul's surprise victory.

Revenue in fixed-income trading rose 78% to $2 billion in the three months through December, outpacing gains at Citigroup (C) - Get Citigroup Inc. ReportJPMorgan Chase (JPM) - Get JPMorgan Chase & Co. Report  and Bank of America (BAC) - Get Bank of America Corp Report  and helping Goldman top the average companywide earnings estimate of $4.84 a share from Bloomberg. Net income at the New York-based company was $2.15 billion, or $5.08 a share.

"We ended the year with positive momentum in a significantly improved operating environment," CFO Harvey Schwartz, who was recently promoted to co-COO, said on a conference call with analysts. "We enter 2017 from a position of strength."

Goldman, which was trading at $234.76 on Wednesday morning, has been the top performer on the blue-chip Dow Jones Industrial Average since Trump upset Democratic contender Hillary Clinton in November. 

The stock's rise, followed by a 20% surge at JPMorgan, reflects speculation that a Republican chief executive and a GOP-controlled Congress will buoy Wall Street's profitability by peeling away some of the stricter regulations established after the 2008 financial crisis.

At the same time, Trump's pledges to cut corporate taxes and increase government spending have pushed up yields on U.S. Treasuries, prompting a scramble by investors to readjust their bond portfolios and interest-rate hedges -- which has showered trading firms with juicy commissions. 

Adding to Goldman's luster, the president-elect's nominees include a raft of the firm's alumni, from Blankfein confidante Gary Cohn, who left the post of COO to become director of Trump's National Economic Council, to presumptive Treasury Secretary Steve Mnuchin and strategist Steve Bannon, who previously served as chairman of right-wing news site Breitbart.

Indeed, Trump's perceived links to the firm have already drawn protesters, with some gathering outside Goldman's Battery Park headquarters on Tuesday, three days before his inauguration and a day before the bank reported 2016 earnings.

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Net revenue for the last three months of the year climbed 12% to $8.17 billion, surpassing the $7.77 billion average of estimates in a Bloomberg survey. 

While revenue from advising corporate clients on mergers and acquisitions slid 19% to $709 million, the company said it maintained its top global ranking, advising on deals including Coty's $12.5 billion acquisition of Procter & Gamble's beauty business.  Total revenue in investment banking, the company's second-largest business, dropped 4% to $1.49 billion.

Debt underwriting rose 28% to $565 million in the three months through December, reaching a record $2.45 billion for the year. Stock underwriting fell 7%, the company said.

Total sales in institutional client services, Goldman's largest division, climbed 25% to $3.6 billion, reflecting the surge in fixed-income trades even as revenue from stock trading, securities services and fees fell.

The 78% gain in fixed-income trailed only Morgan Stanley (MS) - Get Morgan Stanley Report , whose sales in the business nearly tripled. Citigroup's climbed 36%, JPMorgan's rose 31% and Bank of America's gained 20%.

While Goldman's fixed-income gain was higher than Brian Kleinhanzl of brokerage Keefe, Bruyette & Woods had estimated, "we believe this was expected, given stronger than expected fourth-quarter results from peers," he said in a note to clients.

In the year ahead, it will be important for Goldman to manage expenses carefully as non-compensation costs were higher than Keefe Bruyette had estimated, despite a decline from last year.

The firm is focused on that priority, Schwartz said on the call.

In response to a challenging start to 2016, "we undertook and completed a $700 million expensive initiative in the first half," he explained. "We continued this effort to the second half of the year and ultimately generated nearly $900 million in run-rate savings."

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