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Goldman Profits Drop For the Third Straight Quarter

January 20, 2016, 12:59 PM UTC
Views Of Goldman Sachs Group Headquarters Ahead of Earnings
People walk outside Goldman Sachs Group Inc. headquarters stand in New York, U.S., on Monday, Jan. 13, 2014. Goldman Sachs Group is scheduled to release earnings data on Jan. 16. Photographer: Ron Antonelli/Bloomberg via Getty Images
Photograph by Ron Antonelli—Bloomberg via Getty Images

Goldman Sachs (GS) profit slumped for the third straight quarter as a $5 billion settlement of crisis-era legal claims ate into earnings in a tumultuous three months.

Goldman, the last of the big U.S. banks to release fourth-quarter earnings, reported a 71.8% fall in net income applicable to common shareholders to $574 million, or $1.27 per share, from $2.03 billion, or $4.38 per share, a year earlier.

Analysts on average had expected earnings of $3.53 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.

The bank said last week that the settlement would reduce earnings in the quarter by $1.5 billion after taxes.

Goldman, like other banks, had a tough year as oil prices plummeted, concerns about China’s economy intensified, and nervousness about the timing and pace of U.S. interest rate increases weighed on credit markets.

The new year has also started on a grim note, with oil prices falling to their lowest in 13 years and stock prices dropping sharply around the world.