Goldman Sachs quarterly profits decline- but beat expectations

Lloyd Blankfein, Chairman and CEO of Goldman Sachs Group (AFP/Getty Images)

Goldman Sachs beat Wall Street forecasts for its fourth-quarter earnings, largely thanks to paying its bankers less

The investment bank’s 32,900 staff — up 500 on a year ago — received pay and bonuses worth on average $383,000 (£233,500), marginally down on last year’s $400,000.

That average hides the fact that dozens of the top bankers, including chief executive Lloyd Blankfein and London’s Mike Sherwood, will have taken home millions of dollars. The proportion of compensation paid out to net revenues earned fell to 36.9 per cent, the lowest level  since 2009.

Profits after tax dropped 19 per cent to $2.33 billion. Earnings per share fell to $4.60 from $5.87 in 2012. Full-year profits rose 8 per cent at $8 billion and earnings per share grew 12 per cent to $16.34.

Fellow Wall Street bank Citigroup today revealed that its fourth-quarter net income had more than doubled to $2.69 billion — from $1.2 billion in the same period in 2012 — but had still missed estimates.