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Goldman publishes the first quarterly loss in six years

  Lloyd Blankfein, president and CEO of Goldman Sachs Group, listens to his introduction before speaking at the Economic Club of Washington luncheon on July 18, 2012 in Washington, DC. Copyright of the image
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Goldman Sachs CEO, Lloyd Blankfein, in Washington in 2012

The US investment bank Goldman Sachs recorded its first quarterly loss in six years amid continuing problems in its commercial business.

The firm lost $ 1.9bn (£ 1.4bn) in the last three months of 2017, when revenue fell 4% from the previous year.

He also reported a single tax charge of $ 4.4bn, which makes it the last major bank to be hit by the changes in the US code. UU

Bank of America also reported a fiscal charge of $ 2.9bn but overall profits went up.

The United States approved a comprehensive fiscal review in December, which cuts the corporate rate from 35% to 21% and changes the way foreign earnings are taxed.

Banks warned shareholders that the changes will lead to strong short-term, but be beneficial in the long term.

In addition to recording a quarterly loss, Goldman's year-round earnings were reduced by more than 40% to $ 4.3bn.

Some divisions, such as investment banking, did well. But the main source of problems was his difficult business of fixed income, foreign exchange and commodities trading, which saw a 30% decrease in revenues during the year.

In the fourth quarter, revenue in the unit was $ 1 billion, up 50% from the same period in 2016.

Goldman has blamed the problems in unusually quiet markets, which can reduce the demand for customers looking to take advantage of fluctuations.

Executives are committed to improving the business, which accounts for a large part of the company's total revenues.

Investors, however, become impatient.

In a conference call with the company, Wells Fargo analyst Mike Mayo said: "It looks like progress should have been much faster." [19659007] Goldman shares fell almost 3% after the results. Bank of America shares were also lower, falling around 1.5%, despite their better performance.

Despite the fiscal impact, the bank, which has a large business focused on the consumer, earned $ 2 billion in profits in the fourth quarter.

Your annual earnings increased almost 3% from 2016 to $ 16.6 billion. [19659022]
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