Goldman Sachs reported $8.9 billion of earnings applicable to common shareholders in 2020, a 13% increase on a year earlier, driven by a surge in its trading business.
Rivals including JPMorgan, Citigroup and Wells Fargo have all reported double-digit declines in earnings for the year. Bank of America on Jan. 19 reported a 37% drop, to $16.5 billion. Goldman’s return on equity of 11.1% was affected by litigation costs after it settled with regulators over its role in Malaysia’s 1MDB bribery case. Without those charges, its return would have been 15%.
In the fourth quarter, Goldman reported a 28% year-on-year increase in advisory business such as mergers and acquisitions, and a 68% increase in fees from underwriting stock and bond issues. Goldman said it had achieved around half of the $1.3 billion in cost savings it outlined for the medium term in January 2020. The bank has targeted a return on equity of over 13%.A Goldman Sachs sign is displayed inside the company's post on the floor of the New York Stock Exchange in New York, U.S., April 18, 2017.
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