Mixed performance in quarter but Goldman Sachs still reports a loss
Goldman Sachs reported a rare quarterly loss on Wednesday due to a one-time charge associated with US tax reform. Performance across operating division was mixed, although the bank’s profits topped analysts’ expectations when the effect of the one-time item was excluded. The company’s shares fell in early trading. The US investment banking giant reported a fourth-quarter loss of $2.1bn, compared with a profit of $2.2bn in the year-ago period. Revenues in the fourth quarter fell 4.1% to $7.8bn. Goldman’s first quarterly loss since 2011 was driven by $4.4bn in one-time charges, mostly due to US tax reform provisions on the repatriation of foreign earnings. The bank warned of the hit in December. The charge also weighed on annual earnings, which fell 48% to $3.7bn. Numerous large companies have made similar announcements of one-time negative effects from US tax reform in recent weeks. But most, including Goldman Sachs, are bullish on the long-term effects of the US tax cuts, arguing th...
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