Goldman Sachs fourth-quarter profit falls 10 percent; hit by slowdown in trading

bug


We also have more stories about:
(click the phrases to see a list)

Subjects:

 

Photos:


FILE - In this Oct. 16, 2014 file photo, a screen at a trading post on the floor of the New York Stock Exchange is juxtaposed with the Goldman Sachs booth. The Goldman Sachs Group Inc. reports quarterly financial results before the market opens on Friday, Jan. 16, 2015. (AP Photo/Richard Drew, File)


NEW YORK — Goldman Sachs posted a 10 percent drop in fourth-quarter earnings Friday as trading activity declined.

Wall Street investment bank's fixed income, currency and commodities division saw a 29 percent revenue slump during the quarter, from $1.72 billion to $1.22 billion.

Goldman follows other major U.S. banks this week in revealing a noticeable slowdown in trading over the past three months.

Goldman earned $2.03 billion, or $4.38 a share, for the quarter that ended in December. That compares with a profit of $2.25 billion, or $4.60 a share, in the same period a year earlier.

Revenues were $7.69 billion, down from $8.78 billion a year ago.

Analysts surveyed by FactSet expected Goldman to earn $4.32 a share on $7.66 billion in revenue.

Goldman also saw a slowdown in its investment bank underwriting division.

For the full year, Goldman reported a profit of $8.08 billion, or $17.07 a share, up from $7.73 billion, or $16.34 a share, last year.

Goldman's compensation expenses, typically the firm's largest operating expense, were flat for the year at $12.69 billion.

Shares of Goldman fell slightly in in premarket trading to $178.49.

All content copyright ©2015 Daily Journal, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Click here to read our privacy policy.