Goldman Sachs (NYSE:GS) shares are expected to open lower after it reported a double-digit decline in net profits for the final quarter of 2021, as bonuses were bigger than expected after the bank's biggest ever year.
The investment banking goliath unveiled quarterly results showing net income of US$3.8bn, or $10.81 per share, down 13% from the same period a year earlier.
Wall Street analyst estimates had been pointing to net income nearer US$4.1bn.
Last Friday JPMorgan Chase, the biggest lender in the US, kicked off US reporting season with earnings per share (EPS) that beat expectations, but declined for the third quarter in a row, with costs also a concern.
Elsewhere on Friday, rivals Citigroup and Wells Fargo also beat the Street with EPS ahead forecasts.
The cost issues also reared their head at Goldman, with reported operating expenses up 23% to US$7.3bn for the quarter, much more than analysts estimated.
Pay costs including bonuses surged 31% to US$3.2bn, with the consensus pointing to below US$3bn, and for the whole year jumped 33% to US$17.7bn for the whole of 2021.
Full-year net profit of US$21.2bn was more than double the year before, making it Goldman’s biggest year.