Goldman Sachs ups profits while cutting staff

You can take this to the bank!

Goldman Sachs posted a better than expected Q4 profit on improved trading and banking revenue, coupled with a reduction in compensation. The bank set aside 37.9% of its 2012 revenue for compensation, the second lowest portion since going public in 1999.

Revenue was up across each of Goldman’s business lines, from investment banking to investment management. Overall, revenue increased by 53% to $9.2 billion. Earnings were $2.8 billion, or $5.60 per share, up from $978 million or $1.84 per share a year earlier. Analysts were expecting earnings of $3.78 per share.

The bank continued to cut staff during the fourth quarter, with 200 fewer workers. In 2012 it reduced its workforce by 3%, which led to an increase in pay per employee. On average, Goldman employees earned $399,506 apiece in 2012, up from $367,057 in 2011.

Goldman Sachs (GS : NYSE : US$141.09), Net Change: 5.50, % Change: 4.06%, Volume: 10,647,568

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