Goldman Sachs records 50% fall in bond trading revenue
Goldman Sachs records 50% cave in bond trading revenue
Goldman Sachs reported a net loss for its fourth quarter, due to the repatriation charge for brpinging overseas profits back to the U.S., a policy introduced by the Trump administration.
The repatriation charge will follow a united-off cost to bear, indeed of more concern will be the dramatic drop in Goldman Sachs performance for bond trading revenue. The investiture banks' trading revenues in the currency, commodities and severe rigid income space took a dive of 50 pct compared with a class ago. Overall, trading tax revenue saw a decline of a little but still substantial 34 percent.
The poor performance has coincided with Goldman Sachs' restructuring and strategic go down away from what have long been its core trading activities. The numbers, combined with the forecast of a higher than expected effective tax rate, led to a share price drop of 2 percent.
Speaking to CNBC Gerard Cassidy, managing director at RBC Capital Markets, described the FICC trading performance Eastern Samoa "shocking" imputable information technology beingness so much worse than Goldman Sachs' competitors.
In an effort to calm investors and quell concerns, Goldman Sachs publicised a news release which attributed the bank's poor trading revenues to "a challenging environment characterized by low levels of volatility and low client activeness".
Harold Clayton Lloy C. Blankfein, Goldman Sachs chairman and CEO, was likewise keen to emphasise that the bank had delivered "high overall revenue and stronger pre-tax margins" despite the challenging market conditions.
Goldman Sachs did exceed Wall Street estimates in footing of its fourth-tail profits of $5.68 per share, and also reported $7.83 billion gross tax revenue, thrashing estimates of $7.61 billion.
Goldman's investment banking operations recorded $2.14 billion in take-home revenues for Q4 and $7.37 billion for the year. Investment management produced $1.66 billion for Q4, and $6.22 billion for the year, a 7 percent increase.
Blankfein went happening to lend, "With the planetary economy self-contained to accelerate, new U.S. tax legislation providing tailwinds and a leading franchise crosswise our businesses, we are advantageously positioned to wait on our clients and make significant progress on the growth plan we defined in September."
by DayTrading.com
Source: https://www.daytrading.com/goldman-sachs-records-50-fall-bond-trading-revenue
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