appConfigEntityId

bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

hooksArticlePageAdvertisementConfigArticle

liveArticle

appConfig

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

sectionsV2

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

json

Reuters

Bloomberg

Goldman Sachs reported a 21 per cent drop in quarterly profit as revenue from fixed-income trading fell on a day the Wall Street bank announced it has cut its pay ratio to the second-lowest as a public company.
Net income applicable to common shareholders fell to US$2.25 billion, or US$4.60 per share, in the fourth quarter from US$2.83 billion, or US$5.60 per share, in the same quarter of 2012, the Wall Street bank said yesterday. Analysts had expected earnings of US$4.22 per share.
The bank was stung by its heavy reliance on the bond market, which historically has been a source of great profit.
The bond market began to soften in the fourth quarter as investors prepared for higher interest rates, a shift that affected trading, underwriting and investment income for Wall Street banks.
Goldman's revenue from client trading in fixed income, currencies and commodities (FICC) dropped 15 per cent in the period to US$1.72 billion.
Revenue from bond underwriting dropped 14 per cent to US$511 million, while revenue from Goldman's own loans and debt investments fell 13 per cent to US$423 million.
FICC trading had arguably been Goldman's strongest business in the decade leading up to the financial crisis, with the bank raking in billions of dollars from the credit boom and bust.
But it has come under increasing pressure due to new regulations that restrict activities such as proprietary trading and others that make it more expensive for banks to trade or hold securities on their balance sheets.
The fifth-biggest US bank by assets also cut the portion of revenue it pays employees to the second-lowest level as a public firm, it said.
Compensation for last year, which includes salaries, benefits, bonuses and the expense of deferred pay awarded in prior years, fell 2.6 per cent from 2012 to US$12.6 billion. Revenue in the same period was little changed at US$34.2 billion.
Chief executive Lloyd Blankfein allocated 37 per cent of revenue for pay, compared with 38 per cent in 2012. While the average ratio has dropped by more than six percentage points since 2008, Blankfein has said he is wary of cutting too much and losing top performers.
The compensation expense is enough to pay each of Goldman's 32,900 employees US$383,374 for the year.
Reuters, Bloomberg


IMF cuts China’s GDP growth forecast to 4.4% as Iran war pressures global economy

China’s reflation narrative under scrutiny as bond market signals caution

Solid-state battery firms in China and US line up IPOs as oil prices lift EV appeal

Andrew Tilton on China’s growth prospects, economic trajectory in wake of Iran war

Goldman Sachs

Goldman Sachs Q4 net profit falls 21pc on softer bond market

Goldman Sachs was stung by its heavy reliance on the bond market, which historically has been a source of great profit. Photo: Bloomberg

Business

Banking & Finance

Wall Street giant cuts pay ratio as it posts21 per cent drop in fourth-quarter profit


Goldman Sachs reported a 21 per cent drop in quarterly profit as revenue from fixed-income trading fell on a day the Wall Street bank announced it has cut its pay ratio to the second-lowest as a public company.


Goldman Sachs Q4 net profit falls 21pc on softer bond market

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Wall Street giant cuts pay ratio as it posts21 per cent drop in fourth-quarter profit

Wall Street giant cuts pay ratio as it posts21 per cent drop in fourth-quarter profit