NEW YORK (AP) — Goldman Sachs said its fourth-quarter profits dropped by 24% from a year earlier, as the bank had to set aside money to cover its looming settlement with U.S. authorities over its role in a Malaysian sovereign wealth fund scandal.
The investment bank said Wednesday that it earned a profit of $1.72 billion in the quarter, or $4.69 a share, down from a profit of $2.32 billion, or $6.11 per share, a year earlier. The results missed analysts’ expectations for earnings of $5.47 a share.
Despite having a strong quarter in trading, Goldman’s results were marred by significantly higher expenses. The bank set aside roughly $500 million more to cover its legal expenses in the quarter. The bank is currently negotiating a settlement over its involvement in 1MDB, a Malaysian government-sponsored investment fund that became a conduit for high-level Malaysian officials to launder money out of the country.