Goldman Sachs International 2012 Profit Falls to $684 Mil

(Corrects revenue figure in second paragraph.)

Goldman Sachs International, the European unit of Goldman Sachs Group Inc. (GS), said pretax profit fell 73 percent after a jump in compensation expenses tied to the firm’s rising share price.

Pretax profit fell to $828 million from $3.1 billion in the year-earlier period, the company said on its website today. Revenue rose 8.7 percent to $5.6 billion, while administrative expenses more than doubled to $4.5 billion from $2.1 billion.

The jump in expenses reflected a $793 million charge as the company marked share-based compensation to market. Shares of the parent company Goldman Sachs, the fifth-biggest U.S. bank by assets, rose 41 percent last year in New York trading. They fell 48 percent in 2011, generating a $1.8 billion credit for Goldman Sachs International that year.

Revenue at institutional client services, the trading unit, was little changed as rising income from fixed income, currencies and commodities trading offset a decline from equities. Investment banking revenue fell 9.5 percent amid a dearth of stock offerings and takeovers, the company said.

The average number of full-time employees during the year dropped to 5,313 from 5,709 in 2011, Goldman Sachs said.

To contact the reporter on this story: Liam Vaughan in London at

To contact the editor responsible for this story: Edward Evans at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.