Not such a good quarter for one of the largest US banks
For Q4 2021, analysts were looking for an EPS of $11.76, but the actual figures fell short of estimates, at $10.81. However, Goldman Sachs reported revenue of $12.64 billion, higher than the $12.08 billion initially forecasted. The revenue jumped 8% in the quarter from a year-ago period, driven by investment banking and wealth management.
The bank revealed that operating expenses jumped 23% to $7.27 billion, citing "significant higher" pay and benefits for employees, technology expenses, and money set aside for litigation and regulatory costs.
Goldman Sachs revealed that operations surged during the COVID-19 pandemic due to a prolific period in the capital market that suited the bank's Wall Street-centric business model.
According to CEO David Solomon, the bank reported record full-year revenue and profit, posting the highest returns in more than ten years, all in 2021.
Following the report, Goldman Sachs's stock price dropped 4.2%.
Sources: cnbc.com, investing.com
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