The investment banking powerhouse said Tuesday that it earned $3.9 billion in the fourth quarter, or $10.81 a share. But analysts had been forecasting a profit of $4.1 billion, or $11.70 a share. Shares of Goldman Sachs tumbled nearly 4% on the news.
Goldman Sachs said that overall revenue for the fourth quarter came in at $12.6 billion, topping forecasts and rising 8% from a year ago.
The company has also stepped up its efforts to cater to consumers and not just businesses, Goldman Sachs’ consumer and wealth management business, which includes the company’s Marcus online banking unit, posted record revenue last year.
For the full year, Goldman Sachs generated revenue of more than $59 billion and net income of $21.6 billion.
“2021 was a record year for Goldman Sachs. The firm’s extraordinary performance is a testament to the strength of our client franchise and people,” said Goldman Sachs CEO David Solomon in a statement. “Moving forward, our leadership team remains committed to growing Goldman Sachs, diversifying our businesses and delivering strong returns for shareholders.”
Goldman Sachs employees benefited from the solid 2021 results though. The company said Tuesday it set aside $17.7 billion in compensation and benefits for its staff last year, an increase of 33% from 2020. That works out to an average of nearly $404,000 for the firm’s 43,900 workers.