Thursday, October 8th14.2°C

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

Recent Trending

Today's Market
S&P TSX13978.66+110.31
S&P CDNX547.04+4.59
S&P 5002013.43+17.60
CDN Dollar0.7705+0.002
Natural Gas2.483-0.015

Okanagan Companies
Pacific Safety0.23+0.01
QHR Technologies Inc1.23-0.02
Metalex Ventures0.05+0.00
Russel Metals21.55-1.57
Copper Mountain Mining0.61-0.02
Colorado Resources0.07-0.01
ReliaBrand Inc0.0166+0.0135
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp3.11-0.10
Diamcor Mining0.94+0.06


19704633626 Mission Springs Drive # 29
3 bedrooms 3 baths
more details
Click here to feature your property
Please wait... loading

Income for life?

Photo: Thinkstock.comIn almost every conversation I have with clients these days, the topic swings to interest rates. What direction they’re going, how long will they stay where they are and how...

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...



Member of BC Press Council