CNBC reported that Goldman Sachs reported $3.94 billion in fourth-quarter (October – Dec. 21) earnings, a 13% drop compared to the same period last year. with a profit of $4.4 billion It posted quarterly revenue of $12.6 billion, an 8% increase compared to $117 billion in the same period in 2020.
David Solomon, Chief Executive Officer (CEO) Goldman Sachs, said a key factor in the company’s decline in profits was increased quarterly expenses. The latter cost $7.27 billion. or a 23% increase compared to the same period in 2020, with part of the cost being extra payments to employees. This reflects that wage inflation has affected the bank’s business in 4Q21.
Goldman Sachs CEO admits real wage inflation is everywhere in the economy. as a result of the ever-changing environment. Due to the COVID-19 virus and changes in the supply chain This has put pressure on global wage rates in the past year (2021), especially Goldman Sachs, which spent $17.7 billion. For 2021 expenses, which are $13.3 billion higher than 2020 expenses. Most of the expenses are used to increase the wages of the employees who perform well.
As of the 4Q21 earnings release, Goldman Sachs’ share price dropped 6.97% after the market closed earlier in the morning in Thailand time.
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