Big profits for Goldman, JPMorgan
Those numbers aren't translating into higher pay for employees, however.
Goldman Sachs earned $2.89 billion, or $5.60 per share, in the fourth quarter, up from $978 million, or $1.84 per share, a year earlier. Revenue rose to $9.24 billion, well ahead of analysts' expectations of profit of $3.78 on revenue of $7.91 billion.
The picture was also bright at JPMorgan, which reported a profit of $5.7 billion, or $1.39 per share, versus $3.7 billion, or 90 cents, a year earlier. Revenue jumped 10% to $24.42 billion. JPMorgan was expected to earn a profit of $1.16 per share on revenue of $24.42.
As Bloomberg News noted, one reason for Goldman's strong earnings was CEO Lloyd Blankfein's efforts, which began in 2011, to slash $1.9 billion in expenses. He has trimmed Goldman's payroll by 3%. Compensation amounted to 38% of Goldman's revenue in 2012, down from 42% a year earlier. On a per-employee basis. Goldman's compensation was $399,504 as of Dec. 31, up from $367,057 in 2011.
JPMorgan CEO Jamie Dimon, who is maniacal about cutting costs, has even been forced to tighten his own belt. The board slashed his 2012 compensation by 50% in the wake of the $6.2 billion "London Whale" trading loss. No one should shed a tear for Dimon since he still will earn $11.5 million.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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