Fixed-income traders brought in $2.03 billion, a drop driven by lower revenue from rates and currencies. While Goldman has benefited from volatile markets in recent years, its executives have said market-share gains and an increased focus on the financing business should reset the base at a high level in the trading unit.
Investment-banking revenue of $1.65 billion fell short of analysts’ average estimate of $1.68 billion. Signs of life in capital markets helped lift fees from selling stock and raising debt for companies compared to the same period a year earlier. Still, debt-underwriting revenue was $395 million, compared to analysts’ expectations of $439 million in the fourth quarter.
An uptick in new deal announcements have also lifted hopes of revival in the merger business, but realized fees from completed deals still came in 29% lower than a year earlier.
The bank is still in the process of attempting to get out of its credit-card partnerships with Apple Inc. and General Motors Co. after acknowledging defeat in its desire to storm the consumer-lending market.
Results included a $529 million charge tied to the failures of Silicon Valley Bank and Signature Bank. The Federal Deposit Insurance Corp. levied a special assessment against large US banks to backstop uninsured depositors at those firms after they collapsed last year.
This article was provided by Bloomberg News.