new York Goldman Sachs' earnings slumped in the fourth quarter despite rising earnings. The bottom line was earnings slumped 26 percent to $ 1.72 billion due to higher bad debt burdens and rising legal costs, the US investment bank said on Wednesday.
According to an insider, Goldman Sachs is facing a billion dollar settlement to settle the corruption scandal surrounding the Malaysian sovereign wealth fund 1MDB. In the final quarter, Goldman Sachs generated earnings of $ 9.96 billion – a quarter more than in the same quarter last year and more than in a fourth quarter since 2007. Full year earnings fell a fifth to $ 7.9 billion.
Bank of America has felt the fall in interest rates in the United States. Earnings fell four percent to $ 7 billion in the fourth quarter, the second-largest American bank said on Wednesday.
The lower margins were only partially offset by higher lending, and the provisions for bad loans increased. Full-year earnings fell to $ 27.4 billion from $ 28.1 billion in 2018 because of a billion-dollar write-off in the summer.
More: JP Morgan earns more than any US bank before – Citigroup is above expectations, Wells Fargo disappointed. Read more here.
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