Bloomberg News

Goldman Sachs International Earns $828 Million Profit (Correct)

April 30, 2013

(Corrects revenue figure in second paragraph.)

Goldman Sachs International, the European unit of Goldman Sachs Group Inc. (GS:US), said pretax profit fell 73 percent after a jump in compensation expenses tied to the firm’s rising share price.

Pretax profit fell to $828 million from $3.1 billion in the year-earlier period, the company said on its website today. Revenue rose 8.7 percent to $5.6 billion, while administrative expenses more than doubled to $4.5 billion from $2.1 billion.

The jump in expenses reflected a $793 million charge as the company marked share-based compensation to market. Shares of the parent company Goldman Sachs, the fifth-biggest U.S. bank by assets, rose 41 percent last year in New York trading. They fell 48 percent in 2011, generating a $1.8 billion credit for Goldman Sachs International that year.

Revenue at institutional client services, the trading unit, was little changed as rising income from fixed income, currencies and commodities trading offset a decline from equities. Investment banking revenue fell 9.5 percent amid a dearth of stock offerings and takeovers, the company said.

The average number of full-time employees during the year dropped to 5,313 from 5,709 in 2011, Goldman Sachs said.

To contact the reporter on this story: Liam Vaughan in London at lvaughan6@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $191.61 USD
    • 6.58
    • 3.43%
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