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Goldman Sachs slips on mixed Q4 figures

Miguel A. Rodriguez
Miguel A. Rodriguez
19 January 2022
Not such a good quarter for one of the largest US banks

For Q4 2021, analysts were looking for an EPS of $11.76, but the actual figures fell short of estimates, at $10.81. However, Goldman Sachs reported revenue of $12.64 billion, higher than the $12.08 billion initially forecasted. The revenue jumped 8% in the quarter from a year-ago period, driven by investment banking and wealth management.

The bank revealed that operating expenses jumped 23% to $7.27 billion, citing "significant higher" pay and benefits for employees, technology expenses, and money set aside for litigation and regulatory costs.

Goldman Sachs revealed that operations surged during the COVID-19 pandemic due to a prolific period in the capital market that suited the bank's Wall Street-centric business model.

According to CEO David Solomon, the bank reported record full-year revenue and profit, posting the highest returns in more than ten years, all in 2021.

Following the report, Goldman Sachs's stock price dropped 4.2%.


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.