Goldman Sachs Posts Lower Earnings, Revenue

By Saabira Chaudhuri 

Goldman Sachs Group Inc.'s fourth-quarter net income fell while revenue declined.

The bank reported a profit of $2.17 billion, compared with a year-earlier profit of $2.33 billion. On a per-share basis, Goldman's profit was $4.38. Analysts polled by Thomson Reuters had expected earnings of $4.32 a share.

Revenue fell to $7.69 billion. Analysts had expected $7.64 billion.

Investors will be closely watching results from Goldman's fixed income, currencies and commodities trading business. Through much of 2014, FICC trading revenue at the nation's biggest banks was dampened by quiet markets, but in the last few months of the year, banks say they have been grappling with unexpected bouts of sudden volatility, which also can make it hard to turn a profit.

Goldman's compensation ratio, or the proportion of revenue it pays out to employees, will also be closely watched. Compensation costs are usually Goldman's biggest operating expense.

Write to Saabira Chaudhuri at [e-mail]

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