() -Goldman Sachs Group Inc. fourth-quarter earnings fell nearly 13% and missed market expectations on Tuesday as weak trading activity weakened a good year for deals and sent Wall Street’s first investment bank shares down 3%.
Goldman’s trading division reported lower-than-expected earnings in the quarter ended Dec. 31 as a more stable economy led to less volatility and less volatility in financial markets.
The global markets business, which now houses the trading business and accounts for about a third of total revenue, generated nearly $ 4 billion in revenue, down 7 percent.
Compared to the strong quarter of last year, when sales volumes rose sharply, the bank’s share of underwriting earnings fell 8 percent in the quarter due to gains from offering secondary shares.
However, Goldman Investment Bank reported a 45% increase in revenue to $ 3.80 billion as its top rainfall producers were the subject of some major mergers, initial public offers and deals involving special purpose purchasing companies. received a record fee for consulting.
Net income attributable to ordinary shareholders for the quarter ended Dec. 31 fell to $ 3.81 billion from $ 4.36 billion in the same period last year. Earnings per share fell to $ 10.81 from $ 12.08 a year earlier.
According to Refinitive, analysts had expected an average profit of $ 11.76 per share.
However, on Friday, JPMorgan Chase & Co. and Citigroup Inc. both surpassed expectations in favor of analysts. While the earnings of JPMorgan, the country’s largest lender, were hurt by the slowdown in its sales division, the impressive performance of the investment bank mitigated the impact.
Interviews by Nur Zainab Hussain and Niket Nishant in Bengaluru and Matt Skaffem in New York; Edited by Arun Koyyur