The Wall Street lender said it had set aside nearly $ 4.1 billion (3 3 billion) to cover staff compensation costs in the first three months of the year – an average of $ 91,116 each for the approximately 43,900 employees of the world. The amount of earnings, which covers salaries, pensions and benefits, as well as the better estimate of bonuses that Goldman intends to pay at the end of the year, fell by 32% from $ 6 billion last year. Bankers’ bonuses are expected to fall this year as the investment banking boom, sparked by the gradual easing of Covid restraint measures last year, begins to wane. It comes as fewer companies raise money in the financial markets and hold back mergers and acquisitions, which together helped push investment banking commissions and bank profits to record highs throughout 2021. Investment banks have seen a drop in demand this year following Russia’s invasion of Ukraine, which has shaken global markets and made companies more cautious about opening deals and raising funds. “It was a turbulent neighborhood dominated by the catastrophic invasion of Ukraine,” said David Solomon, Goldman’s chief executive officer. “The rapidly evolving market environment has had a significant impact on customer activity,” he added. Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk It reduced profits by 42% in the first quarter to nearly $ 4 billion, up from $ 6.8 billion last year. Revenue fell 27% to just under $ 13 billion due to “significantly lower” revenue from the asset management and investment banking departments. The bank was also hit by rising loan loss forecasts, leaving aside $ 561 million to cover potential default on credit card debt growth and the impact of the war in Ukraine. That compares with the release of $ 70 million last year, as banks realized they had set aside too much cash to mitigate the impact of possible bankruptcies linked to the Covid crisis. Separately, Citigroup reported a 46% drop in first-quarter earnings to $ 4.3 billion, and said the current economic environment had also affected investment banking income.
