Although Goldman Sachs made nearly $4 billion, that was not enough.

Tuesday’s announcement by the investment banking powerhouse stated that it earned $3.9Billion in fourth quarter earnings, or $10.81 per share. Analysts had forecast a profit of $4.1billion, or $11.70 per share. Goldman Sachs shares fell nearly 8% upon the news.

Goldman Sachs (GS)Like many other competitors, it was able to benefit from the boom in trading activity as companies look to acquire or go public. In 2021, the investment banking revenue rose 58% compared to a year earlier.

Goldman Sachs reported that fourth quarter revenue was $12.6 billion. This is higher than forecasts and a rise of 8% over a year ago.

The company has increased its efforts to cater for consumers and not just business. Goldman Sachs’ consumer wealth management business, which also includes Marcus online banking, saw record revenues last year.

Goldman Sachs had a total revenue of over $59 billion for the year and a net income of $21.6 million.

“2021 was an exceptional year for Goldman Sachs. David Solomon, Goldman Sachs CEO, said that the extraordinary performance of the firm is testament to the strength and character of our client base. “Our leadership team is committed to expanding Goldman Sachs, diversifying the businesses, and delivering strong returns to shareholders. We are moving forward.”

Solomon warned investors during the conference call with analysts about the possibility of inflation due to rising wages and disruptions in supply chains resulting from the Omicron strain of Covid-19.

“It’s not surprising that the recent spike in cases is putting more pressure on supply chain. Solomon stated that inflation is still a problem in many countries and that major central banks are starting to raise rates.

He stated, “Inflation may remain above trend for some period. Inflationary pressures could increase before they decrease in the short term. As these easing policies remain unwound, I believe we may see more volatility.

Solomon still expressed optimism that the Covid-19 pandemic will be over. Like most Wall Street firms, Goldman Sachs has put off plans to allow many of its employees to return to Manhattan.

“My view is Covid-19 will become endemic. As a society, it will be an endemic disease and we will find a way for us to live with it,” he stated. He also said that Goldman Sachs must be flexible and dynamic in its protocols to adapt to the new world, while still allowing the majority of our employees to return to work safely.

Goldman Sachs was a big name to be proud of in its earnings report. Goldman Sachs was ranked third in the best performers in 2021 after shares soared by 45% The DowOnly trailing Home Depot (HD)And Microsoft (MSFT).
Goldman Sachs shares dropped Friday, the day that Goldman Sachs’ stock had fallen. JPMorgan Chase (JPM)And Citigroup (C)Both reported earnings that were not strong enough to satisfy investors.

The solid results for 2021 were a boon to employees at Goldman Sachs. Tuesday’s statement by Goldman Sachs revealed that it had set aside $17.7billion in compensation and benefits for its employees last year. This represents a 33% increase over 2020. For the 43,900 employees of the firm, that’s an average of almost $404,000.