Goldman Sachs Inc on Wednesday posted its first quarterly loss in six years on a huge tax charge but adjusted profit trumped analysts’ estimates, as strength in the investment banking business cushioned the blow from a slump in trading.
Goldman and rivals have faced weaker trading markets but the bank has suffered the most because its fixed income, commodities and currency unit (FICC) continues to weigh on results. The unit had a 50 percent drop in revenue - its worst quarter since the financial crisis.
Goldman and rivals have faced weaker trading markets but the bank has suffered the most because its fixed income, commodities and currency unit (FICC) continues to weigh on results. The unit had a 50 percent drop in revenue - its worst quarter since the financial crisis.
FICC revenue was hurt by lower net revenue from currency, credit and interest rate products and commodities.
The bank booked a charge of $4.40 billion from the sweeping tax code changes enacted by President Donald Trump, pushing it to a loss of $2.14 billion or $5.51 per share in the fourth quarter ended Dec. 31. A year-ago, the bank earned $2.15 billion or $5.08 per share.
Shares were down about 1 percent at $255.75 in premarket trading.
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