Investing.com - Goldman Sachs (N:GS) shares declined in pre-market trade on Wednesday, following the release of disappointing quarterly earnings results, thanks in part to the firm's agreement to pay the largest regulatory penalty in its history.
The largest U.S. investment bank said earnings per share came in at $1.27 in the three months ended December 31, missing expectations for earnings of $3.53 a share.
During the fourth quarter of 2015, the firm recorded provisions for the settlement with the RMBS Working Group of $1.80 billion, which reduced diluted earnings per common share by $3.41.
The firm’s fourth quarter revenue totaled $7.27 billion, above estimates for revenue of $7.09 billion.
Net revenues in Investment Banking were $1.55 billion for the fourth quarter of 2015, 7% higher than the fourth quarter of 2014 and essentially unchanged compared with the third quarter of 2015.
Net revenues in Financial Advisory were $879 million, 27% higher than the fourth quarter of 2014, reflecting an increase in client activity in the United States.
“We are pleased that our diversified business mix allowed us to deliver solid results in a year characterized by uneven global economic activity,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer.
Shares of Goldman Sachs were down 1.59%, or $2.50, in pre-market trade at $154.32 from Tuesday's closing price of $156.82.
Meanwhile, U.S. stock futures pointed to a lower open. The Dow futures sank 288 points, or 1.8%, the S&P 500 futures lost 34 points, or 1.82%, while the Nasdaq 100 futures slumped 84 points, or 2.04%.