Goldman Sachs profits hurt by weak investment banking performance

US banking giant Goldman Sachs fell short of estimates on Wednesday as the group reported that quarterly profits had been hurt by weakness in its investment banking arm and higher operating costs.

Goldman Sachs's net earnings applicable to common shareholders fell to $1.72bn from $2.32bn a year earlier, while earnings per share fell to $4.69 - down from the $6.04 brought in a year earlier and short of the $5.47 per share expected on the Street.

Investment banking income fell 6.0% to $2.06bn due to lower M&A advisory fees and a slowdown in corporate lending.

However, total net revenues jumped 23% to $9.96bn as three of the group's four main reporting lines performed strongly.

Operating expenses jumped 42% to $7.3bn and provisions for credit losses rose 51% to $336m in the quarter ended 31 January. The bank recorded net provisions of $1.24bn for 2019, principally as a result of legal costs related to litigation.

As of 1350 GMT, Goldman Sachs shares were down 0.68% in pre-market trading at $244 each.