Sina U. S. stocks on the 15th, on the verge of reaching a settlement on the 1MDB scandal, $1.09 billion in litigation-related fees toGoldman Sachs GroupThe revival of the trading business cast a shadow over the quarter.
Despite a 63 per cent increase in fixed income revenue, fourth-quarter profits fell 24 per cent, below analysts' expectations, as Goldman Sachs Group increased his provision for litigation to the highest level in four years, according to results released on Wednesday. This is also the first appearance of the company's new financial reporting structure.
Other highlights of Goldman Sachs Group's quarterly results included a 24 per cent drop in net profit to $1.92 billion, or $4.69 per share. Overall revenue for the year fell 0.2% to $36.5 billion. Provisions for credit losses rose 51 per cent to $336 million in the fourth quarter, higher than analysts had expected. Investment banking revenue fell 7 per cent year-on-year to $7.6 billion in 2019.
As Goldman Sachs Group's largest division, the trading division's performance, boosted by fixed income, exceeded some analysts' expectations. The division's performance includes derivatives related to consulting and underwriting, which used to be recorded in the investment banking division's financial statements.
JPMorgan Chase & CoTuesday's results set high standards for the industry, with trading desks exceeding expectations by $1 billion.Bank of America CorporationIt also handed in a beautiful answer paper on Wednesday, and trading revenue rose 13%, also better than expected. Investors had expected the trading desks of the industry's biggest banks to recover from their poor performance at the end of 2018, and the big banks have so far lived up to expectations.
Goldman Sachs Group revised the financial reporting structure in response to the demand for greater transparency and to show the company's profitability more clearly. The company removed the so-called investment and loan reporting line, which is usually the most profitable business in a rising market, but has also led to complaints about transparency.
As of press time, Goldman Sachs Group shares fell 0.86 per cent to $243.55. The stock rose 38% in 2019, the biggest gain in six years.