Goldman Sachs International First-Half Pretax Falls 60%Ambereen Choudhury
Goldman Sachs International, the European division of Goldman Sachs Group Inc., said first-half pretax profit fell 60 percent, hurt by a charge linked to employee compensation.
Pretax profit dropped to $335.4 million in the first six months of the year from $847.5 million in the year-earlier period, the company said in a filing. Revenue fell 5 percent to $3 billion.
Administrative expenses rose to $2.5 billion from $2.1 billion, due to a $516 million charge as the company marked the value of stock-based compensation to market prices. Shares of the New York-based parent have climbed more than 19 percent so far this year.
Revenue from institutional client services, the fixed income, currencies and commodities division, fell 11 percent to $2.2 billion, while investment banking revenue climbed 41 percent to $591.4 million, the company said.
Goldman Sachs, based in New York, is the top-ranked mergers adviser in Western Europe, according to data compiled by Bloomberg. The firm is advising Vodafone Group Plc on its 7.7 billion euro ($10.2 billion) takeover offer for German cable company Kabel Deutschland Holding AG.