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.Keywords: