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Goldman Sachs Q4 Profits Drop Amid Surging Expenses & Equities Trading Slowdown – $GS $DIA

By John F. Heerdink, Jr.

The Goldman Sachs Group, Inc. (GS) fourth-quarter reported a 13% decline in profits from a year earlier to $3.94 billion, or $10.81 a share, below the $11.76 analyst estimate. Revenue of $12.64 billion was reported versus $12.08 billion expected. The bank’s operating expenses surged 23% on higher pay for Wall Street workers and increased litigation reserves. 

Earning Highlights:

  • Companywide revenue in the quarter increased 8% from a year earlier to $12.64 billion, more than $500 million above the estimate.
  • Operating expenses soared 23% to $7.27 billion in the quarter, exceeding the $6.77 billion estimate of analysts.
  • The bank kept $182 million set aside for litigation and regulatory costs, compared with $24 million in the year-earlier period.
  • Investment banking revenue soared 45% in the fourth quarter to $3.8 billion.
  • Bank’s global markets division reported a 7% decline in revenue to $3.99 billion as fixed income revenue came in slightly ahead of estimates at $1.86 billion and equities revenue dropped more than expected.
  • Asset management revenue of $2.89 billion in the quarter exceeded the $2.51 billion estimate and consumer and wealth management revenue of $1.97 billion matched expectations. 


The Goldman Sachs Group, Inc. (GS) is one of the world’s leading investment bankers & also a securities and investment management firm that offers a wide range of financial services with a diversified client base. To learn more about The Goldman Sachs Group, Inc. (GS) and to continue to track its progress please visit the Vista Partners Goldman Sachs Group, Inc. (GS), Coverage Page

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(Read Original Story: Goldman shares drop 7% after earnings miss on surging expenses, equities trading slowdown in CNBC)


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