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] The S&P 500 trades higher by 0.2%.
The University of Michigan Consumer Sentiment report for July was revised up to 81.8 from 81.3 in the final reading, while the Briefing.com consensus expected the reading to be revised up to 82.0.
Separately, June construction spending decreased 1.8% month-over-month, while the Briefing.com consensus expected an increase of 0.3%.
Also of note, the ISM Index for July rose to 57.1 from 55.3, while the Briefing.com ... More
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Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
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