Goldman Sachs Profit Drops by 33%

Posted on December 13th, 2023 at 1:24 PM
Goldman Sachs Profit Drops by 33%

From the desk of Jim Eccleston at Eccleston Law 

Goldman Sachs Group Inc. experienced its second consecutive quarter of real estate writedowns and a continued dealmaking slump, reducing its profitability to approximately half of its targeted level.

As reported by AdvisorHub, property investments resulted in a loss of $212 million in the equity book last quarter, and an additional $358 million in impairments contributed to a 33 percent drop in profit. While trading revenue exceeded analysts' estimates and helped mitigate the impact, the company's shares declined by approximately 2.1 percent.

Goldman has suffered its eighth consecutive quarterly profit decline, and the firm's return-on-equity stands at 7.1 percent, significantly below the mid-teens target it has set for itself. Chief Executive Officer David Solomon is working to rejuvenate the bank's stock after scaling back its consumer banking expansion and refocusing efforts on its core business lines. Solomon expressed his optimism, anticipating "a continued recovery in both capital markets and strategic activity if conditions remain conducive." He also claimed that a resurgence in activity would benefit Goldman Sachs as the leader in M&A advisory and equity underwriting.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters. 

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

February 25, 2026
Advisors Increase Crypto Allocations as Merrill Lynch Warns of Significant Risks

Financial advisors are placing more client assets into digital currencies, even as major firms caution investors about the asset class's volatility and speculative nature.

February 24, 2026
Merrill Lynch Highlights AI Risks as FINRA Urges Greater Oversight of Emerging Technology

Merrill Lynch has warned that the expanded use of artificial intelligence and machine learning introduces material operational, compliance, and cybersecurity risks for advisory firms.

February 23, 2026
Drive Planning Founder Pleads Guilty to $380 Million Ponzi Scheme

Todd Burkhalter, founder and chief executive officer of Drive Planning LLC, has pleaded guilty to wire fraud after admitting he orchestrated a $380 million Ponzi scheme that defrauded more than 2,000 investors.