{"id":1809099,"date":"2023-01-18T07:20:41","date_gmt":"2023-01-18T12:20:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1809099"},"modified":"2023-01-18T07:24:57","modified_gmt":"2023-01-18T12:24:57","slug":"goldman-misses-profit-estimates-as-dealmaking-asset-management-take-a-hit","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/goldman-misses-profit-estimates-as-dealmaking-asset-management-take-a-hit\/","title":{"rendered":"Goldman Misses Profit Estimates as Dealmaking, Asset Management Take a Hit"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgoldman-misses-profit-estimates-as-dealmaking-asset-management-take-a-hit%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1809099&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p><a href=\"https:\/\/www.theepochtimes.com\/t-goldman\">Goldman<\/a> Sachs Group Inc. announced Tuesday a larger than expected 69 percent decrease in fourth-quarter profits as it struggles with a slump of dealmaking and weakness within its wealth management businesses.<\/p>\n<p>Wall Street banks are making drastic cuts in their workforce and streamlining as dealmaking activity, which is their major source revenue, stalls due to worries about a weakening world economy and rising rates.<\/p>\n<p>Goldman is also curbing its consumer banking ambitions as Chief Executive Officer David Solomon refocuses the bank\u2019s resources to strengthen its core businesses such as investment banking and trading.<\/p>\n<p>Goldman\u2019s investment banking fees fell 48 percent in the latest quarter, while revenue from its asset and wealth management unit dropped 27 percent due to lower revenue from equity and debt investments.<\/p>\n<p>It also reported a loss of $778million in pre-tax profits for its platform solutions unit. This includes transaction banking, credit cards, and financial technology companies.<\/p>\n<p>According to the bank, full-year net loss in platform solutions business was $1.67 trillion.<\/p>\n<p>In premarket trading, shares of the bank fell 2.5 percent to $364.56<\/p>\n<h2><strong>Rising Costs<\/strong><\/h2>\n<p>Wall Street\u2019s biggest banks have stockpiled more rainy-day funds to prepare for a possible recession, while showing caution about forecasting income growth in an uncertain economy and as higher rates increase competition for deposits.<\/p>\n<p>The quarter saw an 11 percent increase in total operating expenses at Goldman to $8.1 billion.<\/p>\n<p>\u201cExpenses were hard to assess, as GS\u2009did not disclose the severance\/restructuring charges,\u201d UBS analysts wrote in an email.<\/p>\n<p>According to Refinitiv IBES data the bank reported a profit $1.19 billion or $3.32 per share for the three-months ended Dec. 31, which was below the Street estimate of $5.48.<\/p>\n<p>\u201cWidely expected to be awful, Goldman Sachs\u2019 Q4 <a href=\"https:\/\/www.theepochtimes.com\/t-results\">results<\/a> were even more miserable than anticipated,\u201d Octavio Martenzi, CEO at consultancy Opimas.<\/p>\n<p>\u201cThe real problem lies in the fact that operating expenses shot up 11 percent, while revenues tumbled. This strongly suggests more cost-cutting and layoffs are going to come,\u201d He added.<\/p>\n<p>Goldman\u2019s trading business was a bright spot as it benefited from heightened market volatility, spurred by the Federal Reserve\u2019s quantitative tightening.<\/p>\n<p>Fixed income, currency, commodities and trading revenue grew by 44%, while revenue from equity trading decreased by 5 percent.<\/p>\n<p>Net revenue overall fell 16% to $10.6billion<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-reuters\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/reuters-logo-.jpg\" alt=\"Reuters\"   style=\"display:none\"><\/a>\n\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs Group Inc. announced Tuesday a larger than expected 69 percent decrease in fourth-quarter profits as it struggles with a slump of dealmaking and weakness within its wealth management businesses. Wall Street banks are making drastic cuts in their workforce and streamlining as dealmaking activity, which is their major source revenue, stalls due to &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1695410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[13343,5458,15393,6004,9678,9025,8575,15392,7116,3819],"class_list":["post-1809099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-asset","tag-bongino","tag-dealmaking","tag-estimates","tag-goldman","tag-hit","tag-management","tag-misses","tag-profit","tag-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1809099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1809099"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1809099\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695410"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1809099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1809099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1809099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}