Reuters: Global Markets: Goldman earnings soar on revenue gains, compensation cuts

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Goldman earnings soar on revenue gains, compensation cuts Jan 16th 2013, 13:20 Tweet Share this Email Print Related News Exclusive: Morgan Stanley to defer high-earners' bonuses - sources Tue, Jan 15 2013 Apple drags on S&P, Nasdaq; Dell jumps after report Mon, Jan 14 2013 When Goldman's new CFO talks, insiders listen Mon, Jan 14 2013 Wells Fargo profit jumps but mortgage lending slips Fri, Jan 11 2013 Morgan Stanley cuts 1,600 jobs as business languishes Wed, Jan 9 2013 Analysis & Opinion India in depth: Crying out for corporate bonds Big U.S. banks have plenty to prove in 2013 Related Topics Investing and Taxes Simplified » Hot Stocks » Asian Markets » Traders work on the floor of the New York Stock Exchange near the Goldman Sachs stall July 16, 2010. Credit: Reuters/Brendan McDermid Wed Jan 16, 2013 8:43am EST (Reuters) - Goldman Sachs Group Inc said its fourth-quarter earnings nearly tripled, driven by big gains in stock and bond values, increased revenue from dealmaking and lower compensation expenses. Goldman, the fifth-largest U.S. bank by assets, reported earnings of $2.8 billion, or $5.60 per share, up from $978 million, or $1.84 per share, in the same period a year ago. Analysts mostly had been forecasting much lower figures. Following its early morning report on Wednesday, Goldman shares were up 1.8 percent at $138 in premarket trading. A significant part of Goldman's earnings boom came from improvements in market values in the stock and bond markets, as well as increased activity. The New York-based investment bank said it took in "significantly higher" revenues from credit products and mortgages in its bond-trading business. Its investing and lending division, which mostly earns money from higher values on Goldman's own stock and bond investments, reported nearly $2 billion worth of revenue. But gains were broad, with revenue up across each of Goldman's business lines, from investment banking to investment management. Overall, its revenue rose 53 percent to $9.2 billion from $6 billion in the fourth quarter of 2011. Goldman's earnings were also helped by a sharp decline in compensation expenses, typically the biggest cost for Wall Street firms. The bank said compensation fell 11 percent in the fourth quarter compared with a year ago. The expense was just 21 percent of net revenue, roughly half of what the firm usually pays out to employees. (Reporting By Lauren Tara LaCapra; Editing by Gerald E. McCormick and Chizu Nomiyama) Investing and Taxes Simplified Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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