Loading...
See More

Goldman earnings soar on revenue gains

Jan 16 2013 15:26 Reuters

Related Articles

Goldman sells ICBC shares

Goldman to pay fine to settle charges

The Goldman debate

A lesson from Goldman

Goldman letter deepens banks’ trust deficit

Goldman ups earnings, raises dividend

 
London - Goldman, the fifth-largest US bank by assets, reported earnings of $2.8bn, or $5.60 per share, up from $978m, or $1.84 per share, in the same period a year ago.

Analysts mostly had been forecasting much lower figures. Following its early morning report on Wednesday, Goldman shares were up 1.8% at $138 in premarket trading.

A significant part of Goldman's earnings boom came from improvements in market values in the stock and bond markets, as well as increased activity.

The New York-based investment bank said it took in "significantly higher" revenues from credit products and mortgages in its bond-trading business. Its investing and lending division, which mostly earns money from higher values on Goldman's own stock and bond investments, reported nearly $2bn worth of revenue.

But gains were broad, with revenue up across each of Goldman's business lines, from investment banking to investment management. Overall, its revenue rose 53% to $9.2bn from $6bn in the fourth quarter of 2011.

Goldman's earnings were also helped by a sharp decline in compensation expenses, typically the biggest cost for Wall Street firms.

The bank said compensation fell 11% in the fourth quarter compared with a year ago. The expense was just 21% of net revenue, roughly half of what the firm usually pays out to employees.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

goldman sachs

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Government’s decision to withhold payment to municipalities in debt to Eskom is:

Previous results · Suggest a vote

Loading...