Tuesday, September 30th15.6°C
22738
22934

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

23392


Recent Trending




Today's Market
S&P TSX14960.51-16.41
S&P CDNX909.29-3.47
DJIA17042.90-28.32
Nasdaq4493.39-12.462
S&P 5001972.29-5.51
CDN Dollar0.8923-0.0007
Gold1208.00-3.60
Oil90.02+0.26
Lumber333.00+0.10
Natural Gas4.126+0.005

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26+0.03
Cantex0.065-0.025
Anavex Life Sciences0.184-0.001
Metalex Ventures0.0550.00
Russel Metals34.57+0.08
Copper Mountain Mining2.42-0.10
Colorado Resources0.165+0.015
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 



23481

FEATURED Property
19705965490 Mountainside Drive
4 bedrooms 3 baths
$649,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_



23499




Member of BC Press Council


22771