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.
More on Money Now
- Why Wal-Mart's hiring so many veterans
- 9 ways feds bungled foreclosure crisis
- Facebook unveils a better search tool
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -10.80. U.S. equity futures hover near their pre-market lows amid cautious action overseas. The S&P 500 futures trade five points below fair value. Also of note, copper futures have extended their recent weakness and now trade lower by 0.6% at $2.933/lb.
Reviewing overnight developments:
- Asian markets ended lower. China's Shanghai Composite -0.2%, Hong Kong's Hang Seng -1.8%, and ... More
More Market News
The apparel chain takes a hard hit after blaming the weather for its quarterly sales decline. But cold temperatures don't explain the drop in full-year sales as well.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'