Despite booming M&A deals, investment bank Goldman Sachs shrank fourth-quarter earnings.

Weak trading activity caused net income in the final quarter of 2021 to fall 13 percent from the same quarter last year to $3.81 billion, the bank said on Tuesday.

Earnings declined, particularly in the equities business.

Earnings per share were $10.81, up from $12.08 a year earlier.

Like the big banks JP Morgan and Citigroup before it, the institute missed the expectations of the stock market, analysts had expected an average of $11.76 per share.

The stock market reacted negatively before opening.

The share price is down around 4.5 percent before the market.

As in previous quarters, investment banking was once again a key source of income.

The division's earnings climbed 45 percent to $3.80 billion.

Strong revenues from the M&A advisory business drove divisional earnings.

bonuses paid out rose 33 percent to $17.7 billion.

The quarterly reports from Morgan Stanley and Bank of America are expected on Wednesday.

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