Saturday, August 2nd20.4°C
21450

Goldman Sachs reports 21 per cent drop in fourth-quarter profit

Goldman Sachs reported Thursday that its fourth-quarter profit dropped 21 per cent as revenue from mortgages and trading in bonds and other securities weakened.

EARNINGS: The Wall Street bank earned $2.25 billion in the October-December quarter after paying dividends on preferred shares, down from $2.83 billion in the same period a year earlier.

That worked out to $4.60 per share, down from $5.60 per share a year earlier. The results were well above the earnings of $4.18 per share analysts were expecting. Revenue slipped 5 per cent to $8.78 billion, but exceeded analysts' forecast of $7.72 billion.

It was the first year-on-year decline in earnings at Goldman Sachs since the second quarter of 2012, when income fell 12 per cent to $927 million.

HOW IT HAPPENED: Recent weakness in trading of bonds, currencies and commodities has depressed earnings at Goldman.

Goldman's CEO Lloyd Blankfein said in a prepared statement that the company has worked to keep costs down "to provide solid returns even in a somewhat challenging environment."

The decline came despite a 22 per cent jump in earnings in Goldman's investment banking business in the fourth quarter, to $1.72 billion.

WHAT'S NEXT? Blankfein said improving prospects for the U.S. economy will help the company turn in strong results this year.

DIVIDEND, STOCK ACTION: Goldman maintained its quarterly dividend at 55 cents. Its stock fell $4.18, or 2.3 per cent, to $174.57 in afternoon trading.

The Canadian Press


Read more Business News

22364


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
2029958130-133 Wyndham Crescent
5 bedrooms 3 baths
$349,900
more details
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