Business

Goldman shares jump on 40% pay cut for bankers

P

oh and bonuses in a US investment bank Goldman Sachs fell 40% when the company posted results that beat analysts’ expectations.

Total company payroll was $7.8 billion in the six months to June 30, 2022, compared with $11.3 billion a year earlier, representing a 40.3% decline in per capita pay from $277,000 to $165,000.

The company said in a statement: “The decrease in operating expenses compared to the second quarter of 2021 was primarily due to significantly lower compensation and the costs of the payments’.

The company’s profit fell 23% to $11.9 billion, as revenues from investment banking nearly doubled to $1.8 billion, partially offset by a 26% increase in sales in the firm’s investment management division.

Goldman shares jumped 4.5% in early New York trading.

Chris Beauchamp, chief market analyst at trading platform IG Group, said: “Goldmans beat revenue and profit estimates and this could give the market another shot in the arm as it looks set to continue its rally from late last week.

“Given that the market was able to shrug off the bad news JPMorgan last week’s good news from GS seems to provide the potential for a further bounce in banking stocks and the broader market.’

This came after shares of US investment bank JPMorgan fell 5.2% after the company posted results that missed analysts’ expectations.

The firm reported investment banking revenue of $1.35 billion, more than $500 million below market expectations, while equity trading revenue of $3.08 billion beat forecasts.

Investment banking revenue at rival Morgan Stanley fell 55% to $1.07 billion inflation and interest rate pressures have affected the banking sector.

Goldman shares jump on 40% pay cut for bankers

Source link Goldman shares jump on 40% pay cut for bankers

Back to top button