As the 2023 annual finance reports keep coming in, Goldman Sachs (GS) stood out as one of the financial institutions that took a profit knock over the past year. According to Yahoo Finance, the firm reported its lowest returns since David Solomon’s first year at the helm as CEO.
Goldman Sachs reported lowest annual profits since David Solomon took the wheel
The investment manager reported a yearly net income of $8.52bn, a 24% drop from the previous year. Analysts attribute this to slower business rates, exit costs, and job cuts, not just for Goldman Sachs but the industry in general.
Since the $8.46bn profits of 2019, Solomon’s first full year as company CEO, this has been the financial institution’s worst annual performance. Among the US banking and investment groups, this is the second-worst drop after Citigroup’s 38% dive for 2023.
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Despite this poor annual performance, an uptick in equity trades and boosted asset and financial services incomes brought in $2bn during the fourth quarter, a year-on-year 51% increase. However, although investment banking revenues gained 6% compared to the third quarter, it was still 12% down from the previous year.
David Solomon – LinkedIn
Yahoo Finance indicated that Dealogic data showed that investment banking underwent its worst 10 years since 2013. David Solomon reflected on the positives, and said:
This was a year of execution for Goldman Sachs. With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024. Our strategic objectives underscore our relentless commitment to serve our clients with excellence, further strengthen our leading client franchise and continue to deliver for shareholders.
