Investment banking slump
Goldman Sachs profits slump
The profit of the US bank Goldman Sachs collapsed at the end of the year despite a flourishing trading division. According to its own statements on Tuesday, the financial group earned a bottom line of $ 1.3 billion in the final quarter of 2022.
Published: 29 minutes ago
The profit of the US bank Goldman Sachs fell by two-thirds at the end of the year despite a flourishing trading division. (archive image)
That was 66 percent less than a year ago. Losses in retail banking and higher risk provisioning 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 wealth management revenues and a slump in investment banking, which includes assisting companies with IPOs and mergers and acquisitions. 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 inflationary and recessionary risks. Overall, however, group-wide revenues fell by 16 percent to $10.6 billion in the fourth quarter.
In the entire past fiscal year 2022, net profit collapsed by 48 percent to $ 11.3 billion. Earnings 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, around 3,200 jobs are to be cut as part of a savings plan. However, the company has not yet officially confirmed this figure.
Goldman Sachs had already disclosed billions in losses in its new private customer division “Platform Solutions” in a mandatory announcement on Friday. The attempt by the Wall Street house, which traditionally specializes in wealthy customers, to attack the mass market with savings accounts and a credit card launched together with the iPhone manufacturer Apple, had not gone as hoped in recent years. After this excursion, Goldman Sachs obviously wants to go back to its roots as an exclusive bank for wealthy clients.
(SDA)