This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-25763087
The article has changed 5 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Goldman Sachs sees big quarterly profits fall | Goldman Sachs sees big quarterly profits fall |
(35 minutes later) | |
US investment bank Goldman Sachs has reported a big fall in quarterly profits, due largely to a reduction in bond trading revenue. | US investment bank Goldman Sachs has reported a big fall in quarterly profits, due largely to a reduction in bond trading revenue. |
Net earnings for the fourth quarter to 31 December fell to $2.33bn (£1.43bn), down 19% compared with the same period last year. | Net earnings for the fourth quarter to 31 December fell to $2.33bn (£1.43bn), down 19% compared with the same period last year. |
But full-year net earnings rose 8% to $8.04bn on revenues of $34.2bn. | But full-year net earnings rose 8% to $8.04bn on revenues of $34.2bn. |
Rival bank Citigroup also reported results, with its profits also hit by reduced income from bond trading. | Rival bank Citigroup also reported results, with its profits also hit by reduced income from bond trading. |
Citigroup reported a net income of $2.6bn for the quarter, up from the $2.15bn a reported a year earlier but below many analysts' expectations. | Citigroup reported a net income of $2.6bn for the quarter, up from the $2.15bn a reported a year earlier but below many analysts' expectations. |
JP Morgan, which reported its results on Tuesday, also reported suffering from falling or stagnant bond trading volumes. | JP Morgan, which reported its results on Tuesday, also reported suffering from falling or stagnant bond trading volumes. |
Mortgage revenue hit | |
Goldman Sachs chief executive Lloyd Blankfein described the fixed-income market as "a somewhat challenging environment", as US investors prepare for higher interest rates. | Goldman Sachs chief executive Lloyd Blankfein described the fixed-income market as "a somewhat challenging environment", as US investors prepare for higher interest rates. |
Goldman's revenue from client trading in fixed income, currencies and commodities dropped 15% in the fourth quarter to $1.72bn. | Goldman's revenue from client trading in fixed income, currencies and commodities dropped 15% in the fourth quarter to $1.72bn. |
This was partly due to "significantly lower revenues in mortgages", the bank said. | This was partly due to "significantly lower revenues in mortgages", the bank said. |
But quarterly investment banking revenues rose 22% year-on-year to $1.72bn. | But quarterly investment banking revenues rose 22% year-on-year to $1.72bn. |
Net income applicable to shareholders fell to $2.25bn, or $4.60 a share, over the period, compared with $2.83bn, or $5.60 a share, in the same quarter in 2012, the bank said. | Net income applicable to shareholders fell to $2.25bn, or $4.60 a share, over the period, compared with $2.83bn, or $5.60 a share, in the same quarter in 2012, the bank said. |
The bank paid out $12.6bn in pay and bonuses over the year, down 3% compared with 2012. | The bank paid out $12.6bn in pay and bonuses over the year, down 3% compared with 2012. |
Looking forward, Mr Blankfein said: "We believe that we are well positioned to generate solid returns as the economy continues to heal and provide considerable upside for our shareholders as conditions materially improve." | |
'Substantial progress' | |
Citigroup saw its overall revenues fall 2% to $17.9bn for the fourth quarter, due in part to a decline in mortgage loan refinancing volumes. | |
Fixed-income revenues fell 15.5% to $2.3bn, but a rebound in the stock market meant investment banking revenues rose 3% to just over $1bn. | |
In a statement Citigroup's chief executive Michael Corbat admitted that his bank "didn't finish the year as strongly we would have liked", but said it has still made "substantial progress". | |
"We enter 2014 as a strong and stable institution," he said. |