Goldman Sachs on Tuesday reported a bigger-than-expected 69 per cent drop in fourth-quarter revenue because it struggled with a droop in dealmaking and weak spot in its wealth administration enterprise.
Goldman is curbing its shopper banking ambitions as Chief Govt Officer David Solomon refocuses the financial institution’s sources to strengthen its core companies equivalent to funding banking and buying and selling.
Goldman’s funding banking charges fell 48 per cent within the newest quarter, whereas income from its asset and wealth administration unit dropped 27 per cent because of decrease income from fairness and debt investments.
It additionally reported a pre-tax lack of $778 million in its platform options unit, which homes transaction banking, bank card and monetary know-how companies. Full-year web loss for the platform options enterprise was $1.67 billion, the financial institution mentioned.
Shares of the financial institution had been down 2.5 per cent at $364.56 in premarket buying and selling.
Provision for credit score losses was $972 million for the fourth quarter of 2022, in contrast with $344 million a yr earlier. Goldman is planning to cease making unsecured shopper loans, in one other signal it was shifting away from its shopper enterprise.
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