Friday, August 1st21.6°C
22663
22642

Investment banking revenues jump

Goldman Sachs' earnings almost tripled in the fourth quarter, handily beating analysts' estimates, as investment banking revenues surged.

The investment bank earned $2.83 billion after paying preferred dividends, compared with $978 million a year earlier.

The bank's debt underwriting business profited from a rally in bonds and a surge in demand for debt securities. Goldman's debt underwriting business earned $1.96 billion in revenues for the year, its second-best annual performance and the highest since 2007.

"While economic conditions remained challenging for much of the last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders," Goldman's CEO Lloyd Blankfein said in a statement Wednesday.

The bank's compensation cost rose 6 per cent to $12.94 billion for 2012. The bank also reduced its headcount by 3 per cent to 32,400. That means that the average employee at the bank earns almost $400,000 a year.

Goldman differs from other big U.S. banks because it deals almost exclusively with institutions, rather than consumers. Its clients are usually mutual funds, international corporations, other banks and similar firms.

Revenue for the fourth quarter rose to $9.24 billion, 53 per cent higher than in the same period a year ago, beating analysts' estimates of $7.97 billion.

The Canadian Press


Read more Business News

22481


Recent Trending




Today's Market
S&P TSX15215.26-115.471
S&P CDNX1000.63-0.89
DJIA16493.37-69.93
Nasdaq4352.639-17.134
S&P 5001925.15-5.52
CDN Dollar0.9158-0.0003
Gold1293.10+11.7999
Oil97.85-0.32
Lumber325.20+0.80
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.180.00
Knighthawk0.01-0.005
QHR Technologies Inc1.20-0.01
Cantex0.085+0.02
Anavex Life Sciences0.255-0.007
Metalex Ventures0.14+0.06
Russel Metals34.94-0.29
Copper Mountain Mining2.67-0.08
Colorado Resources0.185-0.02
ReliaBrand Inc0.15+0.05
Sunrise Resources Ltd0.035+0.005
Mission Ready Services0.155+0.005

 





FEATURED Property
2029562139 Clifton Rd. N
4 bedrooms 3 baths
$450,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Jobs, jobs, jobs galore

On March 6, 2010 a bridge in Turku, Finland bent 56 inches (143 centimeters) due to structural failures of both piers. No one was injured. The bridge had to be demolished 4 months later. Our infrast...


The rewards of listening

Eighty percent of our success in learning from other people is based on how well we listen. Other people’s experience can be enormously helpful. With it we can often overcome time restraints and...


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...

_








Member of BC Press Council