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 © 2013 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.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.