Goldman Sachs profit fell 7 percent during the fourth quarter of 2014 as investment banking revenues fell and market volatility hit trading. Shartia Brantley reports.
Goldman Sachs joins the chorus of disappointing bank earnings this week. The company beat fourth quarter estimates, but profit fell seven percent during the fourth quarter when compared to the same period last year as investment banking revenues fell and market volatility hit trading. Net revenue in its fixed income, currency and commodities trading unit was twenty nine percent lower than the fourth quarter of 2013, mainly due to debt products and mortgages, but partially offset by higher net revenue from trading commodities and currencies. Goldman Sachs shares were down about 1 percent in early trading One bright spot - Goldman ranked first in merger and acquisition activity in 2014 with over a trillion dollars in transactions. Goldman Sachs' CEO Lloyd Blankfein said the firms sees "...evidence of a continued pick up in momentum for the global economy that will improve the opportunity set for 2015." Overall in this earnings season, most big banks are showing a slowdown in profits in the fourth quarter of 2014. JPMorgan Chase, Citigroup and Bank of America all saw lower revenues in their fixed income, currency and commodities trading units. Wells Fargo was the only large bank so far to post a profit as its credit card unit grew. And the last of the big banks, Morgan Stanley, is expected to release earnings on January 20th.