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The
bank's net earnings applicable to common shareholders fell to
$1.72 billion in the quarter ended Dec. 31 from $2.32 billion a
year earlier. Earnings per share fell to $4.69 from $6.04.
Analysts on average had expected earnings of $5.47 per share,
according to the IBES estimate from Refinitiv.
Revenue from investment banking fell 6% to $2.06 billion, hurt
by lower M&A advisory fees, as well as a slowdown in corporate
lending.
Total net revenue, however, jumped 23% to $9.96 billion as three
of its four main reporting lines performed strongly.
Earlier in January, Goldman reshuffled most of its major
reporting lines and, for the first time, unveiled the size of
its consumer business, responding to long-standing requests for
more transparency from analysts and investors.
Operating expenses jumped 42% to $7.3 billion.
Provision for credit losses rose 51% to $336 million in the
fourth quarter, while the bank recorded net provisions of $1.24
billion for 2019, mainly due to legal costs related to the 1MDB
litigation.
Under Chief Executive Officer David Solomon, Goldman has
undertaken a major shift in strategy from its focus on trading
to building a bigger consumer business in a bid to shield its
revenue from wild swings in financial markets.
Last week, Goldman unveiled the size of its consumer business
for the first time. The unit, which includes the online retail
bank, Marcus, and its credit card business, reported a 23% jump
in revenue to $228 million during the fourth quarter.
Rivals JP Morgan Chase & Co, Citigroup and Bank of America boast
of much larger consumer businesses.
(Reporting by Anirban Sen in Bangalore and Elizabeth Dilts in
New York; Editing by Anil D'Silva)
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