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| Goldman Sachs cuts pay and bonuses as profits halve | |
| (40 minutes later) | |
| US banking giant Goldman Sachs has cut its pay and bonus payments during 2011 - to $12.2bn (£7.4bn). | US banking giant Goldman Sachs has cut its pay and bonus payments during 2011 - to $12.2bn (£7.4bn). |
| It said its total compensation - including staff bonuses - was down 21% from 2010. | It said its total compensation - including staff bonuses - was down 21% from 2010. |
| The bank also said that its quarterly profits had more than halved from the previous year, but still beat analyst forecasts. | The bank also said that its quarterly profits had more than halved from the previous year, but still beat analyst forecasts. |
| Weak US growth and uncertainty about European sovereign debt has hit banks hard globally. | Weak US growth and uncertainty about European sovereign debt has hit banks hard globally. |
| The bank said that it had cut total staff numbers by 7% in 2011 - to 33,300 people, meaning the average compensation per member of staff is about $366,360. | |
| Net income for the last three months of the year fell 58% to $1.01bn from the same period a year earlier. | Net income for the last three months of the year fell 58% to $1.01bn from the same period a year earlier. |
| In the whole of 2011, Goldman said that it made 47% less in profits than in 2010. | In the whole of 2011, Goldman said that it made 47% less in profits than in 2010. |
| 'Concerns' | |
| "This past year was dominated by global macro-economic concerns which significantly affected our clients' risk tolerance and willingness to transact," said Goldman chief executive Lloyd Blankfein. | "This past year was dominated by global macro-economic concerns which significantly affected our clients' risk tolerance and willingness to transact," said Goldman chief executive Lloyd Blankfein. |
| Goldman also said that the UK bank payroll tax - the 50% tax on bankers' bonuses levied by the previous Labour government for one fiscal year - cost it a total of $465m in 2010. | |
| That helped push up its effective tax rate up to 35.2% in 2010, and it had dropped to 28% last year. | |
| On Tuesday, US rival Citigroup reported a profit of $11.3bn for 2011, up 6% on the previous year. | On Tuesday, US rival Citigroup reported a profit of $11.3bn for 2011, up 6% on the previous year. |
| Last week, JP Morgan started earnings season also reported a drop in fourth-quarter profits. | Last week, JP Morgan started earnings season also reported a drop in fourth-quarter profits. |
| The bank made a profit of $3.7bn in the period, down by almost a quarter on a year earlier. | The bank made a profit of $3.7bn in the period, down by almost a quarter on a year earlier. |