(Corrects revenue figure in second paragraph.)
April 30 (Bloomberg) -- Goldman Sachs International, the European unit of Goldman Sachs Group Inc., 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.
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