Goldman earnings soar on revenue gains, compensation cuts

Wed Jan 16, 2013 7:50am EST

Jan 16 (Reuters) - Goldman Sachs Group Inc said its fourth-quarter earnings nearly tripled, driven by big gains in stock and bond values, increased revenue from dealmaking and lower compensation expenses.

Goldman, the fifth-largest U.S. bank by assets, reported earnings of $2.8 billion, or $5.60 per share, up from $978 million, or $1.84 per share, in the same period a year ago.

Revenue rose across each of its business lines, with overall revenue rising 53 percent to $9.2 billion from $6 billion in the fourth quarter of 2011. Compensation fell 11 percent over that period, and was just 21 percent of revenue, roughly half of what the firm usually pays out to employees.