Goldman earnings fall 53%
By Pallavi Gogoi |
January 20, 2011, Thursday
|
Print Edition
Print Edition
GOLDMAN Sachs yesterday said its fourth quarter earnings fell 53 percent due to sharp declines in its investment banking businesses.
Goldman Sachs Group Inc earned US$2.23 billion after paying preferred dividends in the last three months of the year, down from US$4.79 billion in the same period a year earlier. On a per-share basis, the earnings came out to US$3.79 per share versus US$8.20 per share.
Analysts surveyed by FactSet expected the bank to earn US$3.76 per share. Revenue fell 10 percent to US$8.64 billion.
Goldman paid its employees US$15.38 billion in salaries and bonuses, or 39.3 percent of its annual revenue, for 2010. The amount was 5 percent lower than 2009.
For the year, the bank's income fell 37 percent to US$7.71 billion, while its revenue shed 13 percent to US$39.16 billion. Earnings per share fell to US$13.18 from US$22.13.
Goldman reported drops in all of its key businesses. In the fourth quarter, its revenues from financial advisory services fell 7 percent from last year as mergers and acquisitions declined. Goldman also led fewer debt and stock underwriting deals, leading to a 12 percent drop in revenue in that business.
In a troubling sign, the bank said its backlog of investment banking transactions shrank. That suggests revenues from advising companies on deals might not pick up in the first quarter of 2011.
Goldman's trading business, typically its strongest, also fared poorly. Trading revenues from bonds, currencies and commodities plunged 48 percent.
Goldman Sachs Group Inc earned US$2.23 billion after paying preferred dividends in the last three months of the year, down from US$4.79 billion in the same period a year earlier. On a per-share basis, the earnings came out to US$3.79 per share versus US$8.20 per share.
Analysts surveyed by FactSet expected the bank to earn US$3.76 per share. Revenue fell 10 percent to US$8.64 billion.
Goldman paid its employees US$15.38 billion in salaries and bonuses, or 39.3 percent of its annual revenue, for 2010. The amount was 5 percent lower than 2009.
For the year, the bank's income fell 37 percent to US$7.71 billion, while its revenue shed 13 percent to US$39.16 billion. Earnings per share fell to US$13.18 from US$22.13.
Goldman reported drops in all of its key businesses. In the fourth quarter, its revenues from financial advisory services fell 7 percent from last year as mergers and acquisitions declined. Goldman also led fewer debt and stock underwriting deals, leading to a 12 percent drop in revenue in that business.
In a troubling sign, the bank said its backlog of investment banking transactions shrank. That suggests revenues from advising companies on deals might not pick up in the first quarter of 2011.
Goldman's trading business, typically its strongest, also fared poorly. Trading revenues from bonds, currencies and commodities plunged 48 percent.
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