Goldman Misses Profit Estimates as Dealmaking, Asset Management Take a Hit
Goldman Sachs Group Inc. on Tuesday reported a bigger-than-expected 69 percent drop in fourth-quarter profit as it struggled with a slump in dealmaking and weakness in its wealth management business.
Wall Street banks are making deep cuts to their workforce and streamlining their operations as dealmaking activity, their major source of revenue, stalls on worries over a weakening global economy and rising interest rates.
Goldman is also curbing its consumer banking ambitions as Chief Executive Officer David Solomon refocuses the bank’s resources to strengthen its core businesses such as investment banking and trading.
Goldman’s investment banking fees fell 48 percent in the latest quarter, while revenue from its asset and wealth management unit dropped 27 percent due to lower revenue from equity and debt investments….