Business Legendary bank: Goldman Sachs earns less

Legendary bank: Goldman Sachs earns less

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Dhe American investment bank Goldman Sachs did significantly worse business last year – unlike its competitor JP Morgan, which even reported a record profit the previous day and made $ 36.4 billion more than any bank before. Goldman Sachs, on the other hand, announced Wednesday that its 2019 profit fell 20 percent to $ 7.9 billion. The bank even undercut the analysts' negative expectations.

Goldman Sachs had to make high provisions to cover loan defaults and anticipated fines. The company was involved in the money laundering and corruption scandal surrounding the Malaysian sovereign wealth fund 1MDB. Goldman Sachs' investment banking revenues were 7 percent lower. The decline was also due to a particularly strong previous year.

Investment banking, i.e. the business with IPOs, bond issues or company takeovers, is Goldman Sachs' top discipline. Despite the decline, according to the data service Dealogic, the “gold men” were number one in the business advising on acquisitions and mergers as well as IPOs last year.

CEO David Solomon also emphasized the positive developments: "Strong performance in the fourth quarter helped us to achieve a solid result." In addition, the company continued to invest in new business. The company wants to achieve higher returns in the future and will inform about its strategy at an investor day in January.

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