Goldman Sachs has registered a $1.93bn net loss in the fourth quarter of 2017, its first quarterly loss in six years, because of a $4.4bn charge related to overhaul of the US tax law. In the corresponding quarter of 2016, the banking group posted a net income of $2.34bn.
The banking group’s net revenues for the quarter ended 31 December 2017 were $7.83bn, down 4% from $8.17bn in the year ago period.
The bank’s net provisions for litigation and regulatory proceedings were $9m, compared to $147m a year ago.
Net revenues in the group’s Investment Management division in the fourth quarter of 2017 were $1.66bn, a rise of 4% compared to last year. The group attributed the rise in the unit’s revenues to higher management and other fees, reflecting higher average assets under supervision,
Assets under supervision at the Investment Management arm totalled $1.49 trillion, an increase of $38bn from the fourth quarter of 2016.
Net revenues in Institutional Client Services unit were $2.37bn, a 34% slump from last year. Net revenues in Fixed Income, Currency and Commodities Client Execution plummeted 50% year-on-year to $1bn.
The bank attributed the decline to significantly lower net revenues in currencies, credit products, interest rate products and commodities.
Goldman Sachs chairman and CEO Lloyd Blankfein said: “Last year, we delivered higher revenue and stronger pre-tax margins despite a challenging environment for our market-making businesses.
“With the global economy poised to accelerate, new U.S. tax legislation providing tailwinds and a leading franchise across our businesses, we are well positioned to serve our clients and make significant progress on the growth plan we outlined in September.”