Home Business An “exceptional” year for “Goldman Sachs” But investors are angry

An “exceptional” year for “Goldman Sachs” But investors are angry

Goldman Sachs had a remarkable sixth year, but like many of its Wall Street rivals, the numbers weren’t good enough to satisfy volatile investors.

The US bank revealed it was in able to realize profits of approximately $ 3.9 billion during the fourth quarter, equivalent to approximately $ 10.81 per share, but analysts were expecting a profit of $ 4.1 billion, or $ 11.70 per share. The results caused “Goldman Sachs” shares to drop by approximately 8%.

Like many competitors, Goldman Sachs benefited from a boom in trading activity, as companies tried to go public last year. in stock exchange or make acquisitions. Investment banking revenue increased 58% from last year in 2021.

According to a statement, Goldman Sachs said total revenue for the fourth quarter was $ 12.6 billion, exceeding expectations and in 8% increase compared to a year ago.

The company has also stepped up its efforts to cater to consumers, not just businesses, as its consumer and wealth management business, which includes its banking unit online, recorded revenues record in the last year.

Over the full year, Goldman Sachs generated revenues of over $ 59 billion and net income of $ 21.6 billion.

According to CNN, David Solomon, CEO of Goldman Sachs, said: “2021 was a year record for us. The company’s outstanding performance is a testament to the strength of excellence of our customers and people. Moving forward, ours team executive remains committed to growth Goldman Sachs will diversify our business and generate strong returns for shareholders. “

Solomon warned investors that inflation caused by rising wages and supply chain disruptions related to the omicron variant outbreak is likely to continue for some time. “Unsurprisingly, the recent rise in cases is putting more pressure on supply chains. Inflation continues. in many countries and major central banks have started to raise interest rates, “he added.

He continued: “Inflation may be above trend for some time. In the short term, inflationary pressures may continue to build up before starting to ease. I also think we may see more volatility as we phase out these. easing policies “.

However, Solomon expressed hope that the global economy will soon overcome the worst of the Corona pandemic. Goldman Sachs, like most other Wall Street companies, has postponed plans to bring many of its employees back to its Manhattan office.

Goldman Sachs has generated a lot of momentum with its earnings report. Its shares were up 45% in 2021, making it the third best return in the Dow Jones index.

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