Goldman Sachs reports slump in revenues

Lloyd Blankfein and Brian Moynihan Earlier this month, Mr Blankfein warned that political wrangling was hurting profits

US investment bank Goldman Sachs has reported a 20% drop in third quarter revenues, but protected profits by trimming employees' pay and benefits.

Revenues sank to $6.27bn (£3.9bn) in the July-to-September period, as fixed income trading fell sharply.

However, profit was $1.52bn, almost unchanged from a year earlier.

"The third quarter's results reflected a period of slow client activity," said chief executive Lloyd Blankfein in a statement.

Shares in the bank fell by more than 4%, before recovering slightly.

Fixed income trading revenue at the bank declined by 44%, far more than the declines seen in comparable banks such as Bank of America and JP Morgan.

However, Mr Blankfein said business could improve following the deal to resolve the budget impasse in Washington.

"As longer term US budget issues are resolved, we could see an improvement in corporate and investor sentiment that would help lay the basis for a more sustained recovery," he said.

In order to shore up its balance sheet, the bank cut costs primarily by setting aside less for bonuses and other forms of banker pay.

The amount set aside for employee compensation was $2.38bn, down 35% from a year earlier.

More on This Story

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Image of Ankor Wat using lidarJungle Atlantis

    How lasers have revealed an ancient city beneath the forest


  • Peaky Blinders publicity shotBrum do

    Why is the Birmingham accent so difficult to mimic?


  • Agents with the US Secret Service, such as this one, are responsible for guarding the presidentGuarding the guards

    White House break-in adds to Secret Service woes


  • Serhiy Hordiychuk fighting in eastern UkraineNew battle

    Ukraine's wounded forced to fight for artificial limbs


From BBC Capital

Programmes

  • Islamic StateClick Watch

    Can the location of Islamic State militants be found with open source data?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.