US bank Goldman Sachs’ profits collapsed at the end of the year despite a thriving trading division. In the last quarter of 2022, the financial group earned $1.3 billion on Tuesday, according to its own statements.
That was 66 percent less than a year ago. Losses in retail banking and higher risk provisions for loans that could burst in an economic crisis weighed on the balance sheet. The stock fell about 2 percent premarket.
Goldman Sachs suffered in the fourth quarter from lower asset management revenues and a slowdown in investment banking, including assisting companies with IPOs and M&A. on
The bright spot was trading in bonds, commodities and currencies. There were significant gains here as many investors adjusted their portfolios in the face of inflation and recessionary risks. Overall, however, fourth-quarter consolidated revenues fell 16 percent to $10.6 billion.
Annual profit halved
For the entire past fiscal year 2022, net profit collapsed by 48 percent to $ 11.3 billion. Profits fell 20 percent to $47.4 billion. CEO David Solomon spoke of a “challenging economic environment” when presenting the results.
Goldman Sachs now wants to focus on a strategic realignment to strengthen its core business. According to US media reports, about 3,200 jobs will be cut as part of an austerity plan. However, the company has not yet officially confirmed this figure.
Goldman Sachs had already announced billions in losses in its new private client division “Platform Solutions” on Friday in a mandatory announcement. The attempt by the Wall Street house, which traditionally specializes in wealthy clients, to attack the mass market with savings accounts and a credit card launched jointly with iPhone manufacturer Apple, has not gone as hoped in recent years. After this excursion, Goldman Sachs naturally wants to return to its roots as an exclusive bank for wealthy clients. (aeg/sda/awp/dpa)
Soource :Watson
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