Goldman Sachs 4Q earnings fall far short of forecasts on big credit provision By Investing.com


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By Geoffrey Smith 

Investing.com — Goldman Sachs’ (NYSE:) earnings per share plummeted in the final quarter of the year, coming in some 40% below analysts’ expectations due to a sharp drop in revenue from asset and wealth management, as well as higher credit provisions and higher operating costs. 

Goldman said totaled $3.32 in the quarter, down by two-thirds from a year earlier, and well below consensus forecasts of $5.56 a share. Revenue fell slightly short of expectations at $10.59 billion, down 16% from a year earlier, as its fees from asset and wealth management fell 27%. The bank’s dealmakers and bond and currency traders both generated slightly more revenue than expected, but equities sales and trading fell short of consensus. 

The bank also booked charges of $972M against potential losses on its credit card and its point-of-sale loan portfolios.

Goldman Sachs stock fell 1.5% in premarket trading in response.  

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