NEW YORK, Jan 18 — Goldman Sachs reported record annual profits in 2021 today on robust merger and acquisition activity, but higher spending on employee compensation and other items dented fourth-quarter results.

Annual profits surged 137 per cent to US$21.2 billion, an all-time high. 

But fourth-quarter profits fell 13 per cent from the year-ago period to US$3.8 billion as results were weighed down by elevated spending, including a 31 per cent jump in compensation and benefits.

Rival banks last week cited that intensifying competition for labour as an increasing pressure point on results. 

Goldman also set aside US$182 million for litigation and regulatory costs in the fourth quarter, up from US$24 million in the year-ago period.

The investment bank again won higher revenues for financial advisory services and corporate lending, offsetting declines in asset management and markets during the period. 

Annual revenues rose 33 per cent in the 2021 to US$59.3 billion. Fourth-quarter revenues rose eight per cent to US$12.6 billion.

Shares fell 4.1 per cent to US$365.49 in pre-market trading. — AFP