NEW YORK: Investment bank Goldman Sachs swung to a fourth-quarter profit, as the bank’s advisory business helped offset a difficult quarter in trading, given the turbulent markets in late 2018.
The Wall Street firm said on Wednesday that it earned $2.32 billion (Dh8.5 billion), or $6.04 a share, compared to a $2.14 billion loss in the same period a year ago. Like other banks, Goldman Sachs had to make an accounting adjustment to its books after the passage of the 2017 tax law, which required banks to write off billions of dollars in what are known as tax-deferred assets, report agencies. The loss that Goldman reported in the fourth quarter 2017 was at the time the first quarterly loss the bank reported in six years.Goldman’s results beat analysts’ expectations for earnings of $4.30 a share, according to FactSet.
Expectations for Goldman’s results were low this quarter. Goldman has a large trading business, which specialises in trading currencies, commodities and bonds. All three of those assets were extremely volatile in the last months of 2018, and other banks had posted drops or warned to expect declines in their trading revenues.