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.
Read more Business News
- Smith Creek fireWest Kelowna
- Washington State fire updatePenticton / S. Okanagan
- BC tankers assist US firePenticton / S. Okanagan
- Stolen truck smashes storeCentral Okanagan
|QHR Technologies Inc||1.19||+0.04|
|Anavex Life Sciences||0.33||-0.018|
|Copper Mountain Mining||2.83||+0.14|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.19||+0.01|
The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...
Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...
Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...