(Boursier.com) — Goldman Sachs, the New York investment banking giant, reported weaker-than-expected fourth-quarter earnings, down more than 60%, amid falling investment banking revenues and higher reserves than expected for potential credit losses. Goldman said earnings for the three months ending in December came in at $1.33 billion, $3.32 per share, versus $10.81 a year before and $5.56 per consensus share. The group’s revenue fell 16% to $10.6 billion, and also missed the consensus which stood at $10.8 billion. Investment banking revenue fell 48% in 2022, from a year ago, to $7.36 billion. Net income of $32.5 billion from the global banking and markets division still offset this weakness. Merger activity has corrected around 40% from record highs in 2021, with a 56% contraction in the fourth quarter.
Goldman provisioned $972 million in the fourth quarter to cover potential losses in its credit and lending divisions, three times more than a year ago.
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